Asia stocks fall; Europe steady

Asian stocks fell in trading today, as concerns mounted that North Korea may step up missile tests and investors speculated a report will show the U.S. housing market is still contracting.

In Europe on Monday, meanwhile, stocks closed little changed amid ongoing concerns about the sustainability of recent market gains.

Germany’s DAX index of blue chips closed down 0.3% at 4,918.45, while the French CAC-40 index rose 0.2% to 3,236.16. The London and New York stock exchanges were closed for national holidays, a bank holiday in Britain and Memorial Day in the United States.

In France, drug maker Sanofi-Aventis was among the CAC-40 gainers, up 1.6% on news of a $190-million order for swine flu vaccine from the U.S. government.

Shares in Europe recovered in the afternoon after falling after the open on news that the closely watched Ifo Institute’s survey of German business confidence rose less than expected in May. Sluggish demand weighed on construction and manufacturing in Europe’s largest economy as the index increased to 84.2 points in May from 83.7 points in April.

That was the second consecutive increase since March, when the indicator hit a 26-year low of 82.2 points, but short of the 85.9 points the German economic research institute had expected and the 85 points predicted by UniCredit.

Global stocks have been seeking direction after solid gains in recent weeks.

Backward-looking data such as growth and manufacturing output have been dismal, but some indicators of future activity have been more positive. Investors were looking ahead to key U.S. economic reports this week, including home sales and consumer confidence.