Global shares mostly rallied Wednesday after Tokyo launched a massive stimulus package with sentiment also cheered by accelerating economic growth in Britain and upbeat company results.

Awaiting the US Federal Reserve's interest rate decision later, Wall Street won an opening boost from Apple, whose third-quarter earnings topped expectations.

London stocks drove 0.7 percent higher as data showed the British economy grew by 0.6 percent in the second quarter, after 0.4 percent expansion in the previous three months, despite Brexit fears.

In the eurozone, Frankfurt stocks bumped up 0.9 percent and Paris soared 1.6 percent higher in mid afternoon trades.

"Talk of fiscal stimulus in Japan, data showing stronger-than-forecast UK economic growth and mostly better than expected corporate earnings offset Fed jitters in Wednesday trading," said CMC Markets analyst Jasper Lawler.

- Earnings boost Paris -

The French market also climbed on solid earnings from aerospace giant Airbus, automaker Peugeot-Citroen, and luxury goods giant LVMH.

Shares in Airbus lifted nearly 5 percent, while Peugeot-Citroen revved more than 7 percent and LVMH also won more than 7 percent.
Prime Minister Shinzo Abe unveiled the 28-trillion-yen ($266-billion) programme days before the Bank of Japan holds its own meeting that is widely expected to see it loosen monetary policy.

Bolstered by a landslide parliamentary election win earlier this month, Abe had promised to ramp up spending on the stuttering economy following Britain’s shock vote to leave the EU dampened the global outlook.

Promises of support from governments and central banks around the world since the Brexit vote last month have provided the foundation for recent big gains across equities markets.

Tokyo stocks ended the day 1.7 percent higher while the dollar rose to 105.68 yen from 104.64.

"The weakness in the yen ... has been driven by a speech from Abe announcing plans for more than 28 trillion yen’s worth of stimulus," said economist Jeremy Cook at foreign exchange traders WorldFirst.

"How much of this is new spending is unclear with a full policy announcement expected."

The BoJ ends its gathering Friday and is widely tipped to unveil fresh stimulus as the world's number three economy struggles and inflation is virtually non-existent.

But while expectations of new measures have boosted Japanese stocks and sent the yen tumbling -- helping exporters -- analysts warned of a sharp sell-off if policymakers disappoint.

- Fed shifts into focus -
The immediate focus is now on the Fed, which ends its meeting later Wednesday. 

While it is not expected to announce any new policy measures, dealers are keen to see its appraisal of the US economy and plans for interest rates in light of a string of positive data, including on jobs.

"While Brexit may not impact the US in the same way that it will the UK and eurozone, the Fed will likely want evidence of this before pursuing higher rates and being forced to backtrack in the event of an adverse effect on the economy," Oanda's Craig Erlam said in an investors' note.

While the Nikkei soared, other markets stuttered. Hong Kong ended 0.4 percent up and Sydney was marginally higher. 

Shanghai tumbled 1.9 percent following a report that China’s banking regulator was considering clamping down on the nation’s multi-trillion-dollar wealth management products market.

- Key figures at 1340 GMT -

London - FTSE 100: UP 0.7 percent at 6,770.83 points

Frankfurt - DAX 30: UP 0.9 percent at 10,335.54 

Paris - CAC 40: UP 1.6 percent at 4,464.57

EURO STOXX 50: UP 1.1 percent at 3,012.28

New York - DOW: UP 0.3 percent at 18,533.67

Tokyo - Nikkei 225: UP 1.7 percent at 16,664.82 (close)

Hong Kong - Hang Seng: UP 0.4 percent at 22,218.99 (close)

Shanghai - Composite: DOWN 1.9 points at 2,990.00 (close)

Euro/dollar: UP at $1.0997 from $1.0986

Pound/dollar: UP at $1.3139 from $1.3132

Dollar/yen: UP at 105.68 yen from 104.64 yen

Source: AFP