World stocks sag before Federal Reserve meeting

BANGKOK (AP) — World stock markets sagged Monday, ahead of a meeting by Federal Reserve policy makers who are expected to announce new plans to stimulate a sluggish U.S. economy in response to a disappointing jobs report.

 World stocks sag before Federal Reserve meeting

Slowing growth in China raised expectations of fiscal policy stimulus from authorities in mainland China, said Linus Yip, strategist at First Shanghai Securities in Hong Kong.

“I think people are expecting more fiscal policy,” he said.

The Chinese government last week approved 55 investment projects worth 1 trillion yuan ($157.7 billion) to build highways, ports and railways across the country, Xinhua news agency reported.

That helped boost Chinese infrastructure stocks. Hong Kong-listed Anhui Conch Cement gained 3.3 percent and Shanghai-listed Fujian Cement soared 7.6 percent.

Australian mining shares jumped. Rio Tinto Ltd. rose 4.4 percent, Newcrest Mining Ltd. added 4.5 percent and Fortescue Metals Group surged 7.3 percent.

Benchmark oil for October delivery rose 10 cents to $96.52 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 89 cents to finish at $96.42 per barrel on the Nymex on Friday.

In currencies, the euro dipped to $1.2776 from $1.2795 late Friday in New York. The dollar was unchanged at 78.29 yen.