By Sudip Kar-Gupta
LONDON (Reuters) - World stock markets rose on Tuesday, helped by some solid corporate earnings in Europe and a new pledge by Japan that it was prepared to step in to weaken its yen currency.
The MSCI All-Country World index climbed 0.4 percent, the pan-European FTSEurofirst 300 index advanced 1.2 percent, while the MSCI Emerging Market index also edged higher.
European stock markets built on positive momentum from earlier on in Japan, where the Nikkei rose 2.2 percent after Japan's Finance Minister Taro Aso reiterated his resolve to intervene in the currency market if the yen's gains last long enough to hurt Japan's fragile economic recovery.
Aso's comments sent the yen down to its lowest level in almost two weeks against the dollar, and also reinforced the backdrop of central banks around the world looking for ways to boost the global economy. [FRX/]
Lex Van Dam, hedge fund manager at Hampstead Capital, said that record low interest rates from the European Central Bank (ECB) meant equities still offered more attractive returns than cash or bonds.
"Rates are not going anywhere, so buying any dips on the stock market might still be the best strategy," he said.
European equities were also propped up by some decent corporate results in the region.
Shares in Credit Suisse (SIX:CSGN) rose after the Swiss bank reported a smaller-than-expected first quarter loss, while jewellery maker Pandora surged after posting higher profits and raising its financial outlook.
Greek shares also rose after euro zone finance ministers offered to grant Greece some debt relief, with the move also causing Greece's 10-year bond yields to fall below 8 percent for the first time in more than six months.
The offer appears to be a compromise between Germany, which does not believe Greece needs additional debt relief, and the International Monetary Fund, which insists it is necessary, and will be fleshed out by deputy finance ministers by May 24.
"At the very least it appears the gap between the IMF and the Germans appears to be narrowing and that has been very well received by investors," said Nick Stamenkovic, bond strategist at RIA Capital Markets.