US STOCKS-Wall St opens higher on hopes of Chinese stimulus
* China's imports shrink for 10th straight month
* U.S. small business confidence rises in August
* Media General jumps after offer to buy Meredith Corp
* Indexes up: Dow 1.9 pct, S&P 1.9 pct, Nasdaq 2.1 pct (Updates to open)
By Tanya Agrawal
Sept 8 (Reuters) - U.S. stocks opened sharply higher on Tuesday after weak economic data out of China bolstered hopes of more stimulus measures from the Chinese government.
China's imports shrank far more than expected in August, falling for the 10th straight month. Imports fell 13.8 percent from a year earlier, more than the 8.2 percent drop economists had expected.
However, Chinese stocks rose nearly 3 percent on Tuesday as a surge in late-afternoon buying helped erase early losses. Late on Monday, China said it would remove tax on dividend incomes for investors who hold stocks for more than a year in an effort to encourage longer-term investment.
"With volatility having receded somewhat during the past few days it appears that investors have been reassessing the potential negative fallout from the slowdown in China," said Markus Huber, a senior analyst at Peregrine & Black. Continuación...