Volkswacht Bodensee - Stocks mainly rise after Wall Street's AI-fuelled rally

Investors have largely welcomed the first few days of Trump 2.0 as he held off immediately returning to the hardball trade policies of his first term.

However, warnings that China, the European Union, Canada and Mexico could be hit by tariffs as soon as February 1 have given cause for concern.

"Investors are still weighing Trump's tariff talk, though history suggests his bark often echoes louder than his bite," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

In Europe, London retreated from its record highs but Frankfurt pushed on with its winning streak and Paris also rose.

Tech titans including Nvidia, Microsoft and ARM helped lead a surge in New York on Wednesday, after Trump announced a new $500 billion venture to build infrastructure for artificial intelligence in the United States.

Tokyo-listed SoftBank, named in the venture, extended the rally Thursday, piling on more than five percent and boosting Tokyo's gains.

Elsewhere, Chinese authorities unveiled measures to bolster the country's stock markets, including allowing pension funds to invest in listed companies and pushing firms to increase share purchases.

The measures provided some support with Shanghai's stock market advancing, but Hong Kong gave up early gains to end lower.

"Recent history would suggest Beijing will need to take more radical action if Chinese shares are to enjoy a sustained recovery," said AJ Bell investment director Russ Mould.

Seoul shed more than one percent after South Korea's central bank revealed weak economic growth data for the fourth quarter as the country was hit by the fallout from impeached President Yoon Suk Yeol's brief declaration of martial law.

The yen edged up against the dollar ahead of the Bank of Japan's policy decision Friday, when many investors expect it to raise interest rates for the third time since March.

"Economic data continues to support the BoJ's case for a rate hike," said Gregor Hirt at Allianz Global Investors, pointing to upward momentum in core consumer prices.

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.1 percent at 8,539.00

Paris - CAC 40: UP 0.3 percent at 7,861.18

Frankfurt - DAX: UP 0.3 percent at 21,317.70

Tokyo - Nikkei 225: UP 0.8 percent at 39,958.87 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 19,700.56 (close)

Shanghai - Composite: UP 0.5 percent at 3,230.16 (close)

New York - Dow: UP 0.3 percent at 44,156.73 (close)

Euro/dollar: DOWN at $1.0413 from $1.0425 on Wednesday

Pound/dollar: UP at $1.2320 from $1.2313

Dollar/yen: DOWN at 156.40 yen from 156.45 yen

Euro/pound: UP at 84.51 pence from 84.48 pence

West Texas Intermediate: UP 0.1 percent at $75.51 per barrel

Brent North Sea Crude: UP 0.1 percent at $79.08 per barrel

T.Egger--VB