Hopes of fresh Japanese gov’t stimulus give boost to Europe stock markets

Chinese stocks jumped to their highest in seven months on Monday, led by property and financial shares, as investor confidence rebounded.

In Japan, data showed growth in the world s third largest economy was flat at 0.0 percent quarter-on-quarter, missing economists predictions for a 0.2 percent expansion in the April-June period as weak exports and a fall in business spending held back activity.

Analysts said the move is seen as a blow to Hong Kong’s stock market which is facing delisting plans by other mainland firms.

The ChiNext Index rose 3.3 percent after the Hong Kong Economic Journal said small-cap shares in Shenzhen will be included in the link and the start date may be announced as soon as this week. The plan could be blocked by 10 percent voting against. Trading volumes on the gauge surged 63 percent above the 30-day average, while turnover was the highest in four months. “There’s much talk about mergers and acquisitions” in the real estate industry, he said. Stocks rallied since investors are optimistic more stimulus can be expected from Beijing following the disappointing economic data released last week. The economy grew 6.9 percent in 2015 – its weakest in some 25 years.

Among the actives, Hyundai Motor perked 1.12 percent, while Kia Motors spiked 1.68 percent, Samsung Electronics slid 0.9 percent, AmorePacific dropped 1.89 percent, SK hynix gave away 1.29 percent and Naver added 0.51 percent.

China is trying to restructure its economy to make the spending power of its almost 1.4 billion people a key driver for growth, instead of massive government investment and cheap exports. South Korean stock markets were closed for a holiday.

Some energy stocks rose as oil traded above US$44 a barrel on hopes of producer action to control output. The gains were driven by indications that major oil producers may reconsider an agreement on freezing production to boost the market.

London and Frankfurt saw small gains while Paris was almost flat in the absence of major European data and with trading subdued on an official holiday in France and parts of Germany.