Asian stocks saw a steady, unspectacular start to the week with investors looking ahead to the release of the latest US and Chinese economic data.
Also adding to the subdued mood was a holiday in Japan, the source of much of last week’s turmoil when the Tokyo bourse suffered its second biggest ever daily drop as it plummeted to four-year lows.
Chinese stocks experienced little movement as worries over an economic slowdown left investors cautious.
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Mainland and Hong Kong stocks traded within a narrow range and, despite advancements in other regional markets, the potential deceleration of the world’s second-largest economy saw many investors stay on the sidelines.
China issues figures on retail sales and industrial production on Thursday, which are expected to show the economy continuing to underperform, underlining the need for more stimulus.
The blue-chip CSI300 index saw a slight drop, with its financial sector falling.
The Shanghai Composite Index lost 0.14%, or 3.99 points, to 2,858.20, while the Shenzhen Composite Index on China’s second exchange edged down 0.47%, or 7.36 points, to 1,546.57.
The Hang Seng Index gained 0.13%, or 21.42 points, to 17,111.65.
Elsewhere across the region, in Seoul, the Kospi jumped 1.15% to 2,618.30, as shares in Samsung Electronics gained 1.1%, tracking advances in Big Tech companies late last week.
Taiwan’s Taiex advanced 1.4%, as computer chip giant Taiwan Semiconductor Manufacturing Co added 0.6% and Foxconn leapt 4.5%. Australia’s S&P/ASX 200 rose 0.5% to 7,813.70, while Bangkok was also closed for a holiday.
Indian stocks fell with Mumbai’s signature Nifty 50 index down 0.08%, or 20.50 points, at 24,347.00.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3%, led by the bounce in Taiwan.
US Dollar Inches Up
Eurostoxx 50 futures rose 0.5% and FTSE futures 0.4%. S&P 500 futures and Nasdaq futures both added 0.1% in thin trading.
So far, around 91% of the S&P 500 have reported earnings and 78% of those have beaten the Street. Results from Walmart and Home Depot this week will also offer a snapshot on how US consumers are holding up.
Key for the Federal Reserve will be US consumer prices on Wednesday where economists look for rises of 0.2% in both the headline and core, with the annual core slowing a tick to 3.2%.
As well as July retail sales, there is data on industrial output and housing starts, along with several surveys on regional manufacturing and consumer sentiment.
The futures market currently implies a 49% chance of the Fed cutting by 50 basis points in September, though that is down from 100% a week ago when Japanese equities went into freefall.
In currency markets, the dollar edged up 0.3% to 147.08 yen, and away from last week’s deep low of 141.68, while the euro was steady at $1.0919.
In commodity markets, gold held at $2,424 an ounce, after dipping slightly last week.
Oil prices inched up, having bounced 3.5% last week as fears of a widening Middle East conflict threatened supplies.
Key figures
Tokyo – Nikkei 225 <> CLOSED
Hong Kong – Hang Seng Index > UP 0.13% at 17,111.65 (close)
Shanghai – Composite < DOWN 0.14% at 2,858.20 (close)
London – FTSE 100 > UP 0.52% at 8,210.21 (0933 BST)
New York – Dow > UP 0.13% at 39,497.54 (Friday close)
- Reuters with additional editing by Sean O’Meara
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