Volkswacht Bodensee - China stocks soar on stimulus as US indices end Q3 at records

But a profit-warning from auto giant Stellantis and from Britain's Aston Martin sent shivers through the industry, adding to the temptation to lock in gains on the final trading session of the third quarter.

Shanghai's stock market jumped more than eight percent -- its best day since 2008 -- while Hong Kong briefly leapt around four percent, a day before Chinese markets shut for the Golden Week holiday.

They extended a rally that began last week as Chinese officials announced fiscal measures, notably interest-rate cuts and relaxed rules on buying homes, aimed at igniting growth in the world's second-biggest economy.

Developers were among the best performers in Hong Kong, with Kaisa rocketing more than 80 percent, Sunac jumping over 55 percent and Agile Group up 19 percent.

"The Chinese stock market rally will take a breather during the October holiday, which will give investors time to take stock and to decide whether the Asian powerhouse's shares have further to run," said Kathleen Brooks, research director at XTB.

But elsewhere in Asia, Tokyo stocks dropped nearly five percent on expectations that incoming prime minister Shigeru Ishiba would pursue policies keeping the yen strong -- which would weigh on Japanese exporters.

Europe also had a difficult day as worries about the health of the car industry bruised sentiment.

In Paris, Stellantis -- whose brands include Jeep, Fiat and Peugeot -- saw its shares plummet 14.7 percent after slashing its operating margin target, citing costs for improving its North America operations and increased Chinese competition.

Britain's Aston Martin also lowered its financial guidance for 2024, sending its shares down 23 percent.

US stocks were also under pressure much of the day, with US auto giants General Motors and Ford also falling decisively.

But New York enjoyed a late-session rally that propelled the market back into positive territory.

The broad-based S&P 500 finished at 5,762.45, an all-time high, up 0.4 percent for the day and up about 5.5 percent for the quarter.

The Dow also edged to a fresh record, the latest in recent weeks amid expectations for more Federal Reserve easing in the coming months.

"This has been a great quarter," said Steve Sosnick at Interactive Brokers. "It's hard to find losers this quarter."

This week's data includes the September jobs report, which will affect the Fed's monetary policy moves.

On Monday, Fed Chair Jerome Powell signaled that interest rates are likely to come down more.

"Disinflation has been broad-based, and recent data indicate further progress toward a sustained return to two percent," Powell said at the National Association for Business Economics annual meeting in Tennessee.

"Broader economic conditions also set the table for further disinflation," the Fed chair added.

- Key figures around 2030 GMT -

New York - Dow: UP less than 0.1 percent at 42,330.15 (close)

New York - S&P 500: UP 0.4 percent at 5,762.48 (close)

New York - Nasdaq: UP 0.4 percent at 18,189.17 (close)

London - FTSE 100: DOWN 1.0 percent at 8,236.95 (close)

Paris - CAC 40: DOWN 2.0 percent at 7,635.75 (close)

Frankfurt - DAX: DOWN 0.8 percent at 19,324.93 (close)

Tokyo - Nikkei 225: DOWN 4.8 percent at 37,919.55 (close)

Hong Kong - Hang Seng Index: UP 2.4 percent at 21,133.68 (close)

Shanghai - Composite: UP 8.1 percent at 3,336.50 (close)

Euro/dollar: DOWN at $1.1137 from $1.1162 on Friday

Pound/dollar: FLAT at $1.3374

Euro/pound: DOWN at 83.25 pence from 83.46 pence

Dollar/yen: UP at 143.63 yen from 142.21 yen

West Texas Intermediate: FLAT at $68.17 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $71.77 per barrel

C.Kreuzer--VB