World stocks mixed as China stimulus hopes fade

"Knowing China will be spending is comforting, but we have doubts whether this will help other countries' economies in the end," said Kelvin Lau, a regional economist at Standard Chartered Bank in Hong Kong.

After opening higher, Asian stocks started to pare their gains by the afternoon as many investors booked profits from Wednesday's rally

Japan's Nikkei 225 stock average rose 142.53 points, or 2 percent, to 7,433.49 while South Korea's Kospi ended down 0.1 percent at 1,058.18 in a choppy session.

In China, Shanghai's benchmark gained 1 percent to 2,221.08 after jumping more than 6 percent the day before. Prices were initially down after Wen's speech, but rebounded on reports of a rise in bank lending and speculation a tax on stock trading might be cut.

Hong Kong's Hang Seng lost 118.76 points, or about 1 percent, to 12,212.39. Benchmarks in Australia and Taiwan gained while Singapore and Indian stock measures fell.

As trading opened in Europe, benchmarks in Britain, Germany and France were off about 1 percent or more ahead of expected interest rate cuts from the European and British central banks. Both were expected to slash benchmark rates to new record lows.