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New York: US stocks fell on Monday as bank shares slid and lower oil prices hurt the energy sector, but benchmark indices in Japan and Europe soared as investors weighed the chance of more Federal Reserve action after Friday's cut in the discount rate on its loans to banks.
The US central bank's surprising move on Friday rippled across time zones in Asia and Europe on Monday, causing rebounds in stock markets. World stock markets had fallen sharply in recent weeks.
Dollar
The dollar rose against the yen, which prompted Japanese investors to buy exporters' shares during Tokyo's stock trading session.
The dollar gained about 0.4 per cent to 114.77 yen from 114.35 late on Friday, while the euro rose 0.3 per cent to 154.67. The euro stood at $1.3473.
The Nikkei soared 458.80 points to end at 15,732.48. The FTSEurofirst 300 index advanced 0.6 per cent to close at 1,481.90.
The Dow Jones industrial average was down 0.52 per cent, at 13,010.31. The Standard & Poor's 500 Index was down 0.84 per cent, at 1,443.85. The Nasdaq Composite Index was down 0.36 per cent, at 2,495.89.
US Treasury bond prices gained as credit concerns lingered .
Gold gains on dollar and stock effect
Gold gained with a gain in the dollar and recoveryin stocks, but investors remained cautious.
Spot gold in London declined as low as $650 an ounce before rising to an intra-day high of $660.20.
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