(Alliance News) - Stocks in London are set to open slightly higher on Tuesday, as Asian equities mostly rise, after stocks on Wall Street continued to reach new highs.

IG says futures indicate the FTSE 100 to open up 9.1 points, 0.1%, at 7,487.7 on Tuesday. The index of London large-caps closed up 25.78 points, 0.4%, at 7,487.7 on Monday.

Sterling was quoted at USD1.2737 early Tuesday, higher than USD1.2717 at the London equities close on Monday. The euro traded at USD1.0903, higher than USD1.8990. Against the yen, the dollar was quoted at JPY148.12, up versus JPY147.94.

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.4%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.3%.

"US markets picked up where they left off on Friday with new record highs for the Dow, S&P 500 and Nasdaq 100 although we did see a loss of momentum heading into the close, as US yields rebounded off their lows of the day," said CMC Markets UK chief market analyst Michael Hewson.

In Asia on Tuesday, the Nikkei 225 index in Tokyo closed down 0.1%.

The Bank of Japan maintained its signature monetary easing measures on Tuesday, as speculation grows of a shift away from its ultra-loose stance.

After a two-day policy meeting, board members decided to keep interest rates in negative territory – a global anomaly that has driven down the yen against the dollar, while also leaving unchanged the band in which rates for 10-year government bonds fluctuate.

Analysts had predicted the BoJ would stand pat, partly to avoid further disruption after an earthquake on New Year's Day killed at least 233 people in central Japan.

The BoJ sees the increases in prices as driven by temporary factors including higher energy costs, and on Tuesday it revised down its inflation forecast for the next fiscal year to 2.4% from 2.8%.

In China, the Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was surged 3.3%.

Traders were cheered by reports that Chinese authorities were considering a blockbuster boost to equities after a painful start to the year.

Authorities are looking at a raft of initiatives, Bloomberg reported, adding that policymakers were seeking to mobilise nearly USD280 billion, mainly from the offshore accounts of state-owned enterprises.

The S&P/ASX 200 in Sydney closed up 0.5%.

Gold was quoted at USD2,030.73 an ounce early Tuesday, higher than USD2,024.07 on Monday.

Brent oil was trading at USD80.24 a barrel, rising from USD79.73.

In Tuesday's UK corporate calendar, Crest Nicholson posts its full-year results and AB Foods releases a trading statement.

The economic calendar has UK public sector borrowing due shortly, with consumer confidence data out for the eurozone later on.

By Elizabeth Winter, Alliance News deputy news editor

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