Global Stocks: U.S. and Asian stock indices gained

U.S. stock markets reopened on Tuesday and indices gained amid hopes for stimulus from China's government.

The Dow Jones Industrial Average rose 390.30 points, or 2.4%, to 16492.68. The S&P 500 gained 48.19 points, or 2.5% to 1969.41. The Nasdaq Composite Index climbed 128.01 points, or 2.7%, to 4811.93.

U.S. small business confidence was almost unchanged in August. The National Federation of Independent Business small business confidence index bounced after a sharp drop in June. The index rose to 95.9 in August from 95.4 in July, while economists had expected it to climb to 95.5.

The indices were slightly weighed by uncertainty over prospects of a rate hike in the U.S. The payrolls report failed to clarify this situation.

This morning in Asia Hong Kong Hang Seng added 2.97%, or 630.50 points, to 21,889.54. China Shanghai Composite Index gained 1.69%, or 53.66 points, to 3,224.12. The Nikkei jumped 5.79%, or 1,009.49 points, to 18,436.57.

Chinese stocks rose on expectations of further stimulus from the government. The Ministry of Finance said late Tuesday that major construction projects will be accelerated, the management of local government debt will be standardized, and taxes will be reformed. Authorities also said the National Development and Reform Commission would remove personal income tax on dividends for shareholders, who hold stocks for more than a year, in order to stimulate long-term investment.