World markets mixed; BOJ announces modest stimulus expansion

MANILA, Philippines - European shares were mixed in early trading on Friday after a spotty day in Asia as investors were disappointed by the Bank of Japan's modest expansion of its lavish monetary stimulus.

Britain's FTSE 100 slipped 0.2 percent to 6,720.08. Germany's DAX gained 0.6 percent at 10,331.16. France's CAC 40 rose 0.2 percent at 4,427.22.

U.S. futures augured a lower opening on Wall Street, with the Dow and S&P 500 futures down 0.1 percent.

Japan's Nikkei 225 gained 0.6 percent to 16,569.27, recovering from earlier losses. Hong Kong's Hang Seng index fell 1.3 percent to 21,891.37. Australia's S&P ASX 200 rose 0.1 percent to 5,560.40. China's Shanghai Composite Index slipped 0.5 percent to 2,979.34 and South Korea's Kospi slid 0.2 percent to 2,016.19. Most Southeast Asian markets were lower.

Japan's central bank ended a policy meeting Friday by announcing it will expand purchases of exchange traded funds from financial institutions to help inject more cash into the world's third-largest economy and pursue its 2 percent inflation target. But the measures fell short of hopes for more aggressive action.

"After much anticipation Japan has announced more monetary and fiscal stimulus. However, the Bank of Japan has underwhelmed with just a doubling of its of ETF buying program ... but no increase in its bond buying program or monetary base target, suggesting no real further easing of monetary policy," said Shane Oliver, head of investment strategy and chief economist of AMP Capital.

Japan's Nikkei 225 gained 0.6 percent to 16,569.27, recovering from earlier losses. Hong Kong's Hang Seng index fell 1.3 percent to 21,891.37. Australia's S&P ASX 200 rose 0.1 percent to 5,560.40. China's Shanghai Composite Index slipped 0.5 percent to 2,979.34 and South Korea's Kospi slid 0.2 percent to 2,016.19. Most Southeast Asian markets were lower.

In currencies, the dollar fell to 103.73 yen after closing at 104.79 yen on Thursday. The euro rose to $1.1097 from $1.1081 from the previous day.

In the energy market, benchmark U.S. crude lost 38 cents to $40.76 on the New York Mercantile Exchange. It fell 78 cents to close at $41.14 a barrel on Thursday. Brent crude, used to price international oils, fell 56 cents to $42.68 in London. It settled at $43.23 the previous day.