Asia stocks start data-heavy week with gains; dollar creeps up
SINGAPORE (Reuters) – Asian stock markets were positive on Monday shrugged off a new North Korean missile test as investors focused their attention on a series of global economic data and their results this week as the dollar rose, But is still limited by US political concerns.
European stock markets look set for a smooth start, with CMC’s most anticipated financial markets such as Britain’s FTSE 100, Germany’s DAX and France’s CAC 40 to all small ones with little change.
MSCI’s broader index of Asian non-Japanese stocks reversed expected losses to increase by 0.25 percent.
Chinese stocks rose, supported by the forecasts of several leading companies with strong earnings in the medium term. The first-order index and the Shanghai compound both increased by 0.6%. Hong Kong’s Hang Seng rose 1 percent to a two-year high.
This good performance came despite a drop in Chinese official indices manufacturers and procurement services in July, although they remained above the 50-point mark that separates the growth from the monthly contraction.
Investors remain wary after North Korea has carried out a Friday night missile test, in which it demonstrated its ability to hit the Americas. The United States responded by flying two bombers on the Korean peninsula Sunday.
But the previous shouts have dissipated so much losses, the Korean won has been reversed. The dollar fell 0.2% to 1 120.7 won, after jumping nearly 0.7% on Friday. South Korea’s Kospi fell 0.2 percent.
Australian stocks rose 0.7%.
Safe havens perceived from the Japanese yen has strengthened the dollar by losing 0.15% to 110,545 yen, playing the low since mid-June.
“The geopolitical change is likely to keep the higher movements on record early in the week, as the disorganized policy of the United States and China over North Korea are not interested in things,” said Stephen Innes, Head of OANDA Asia-Pacific trade.
The Nikkei in Japan was flat with official news of offsetting the yen, the country’s industrial output rebounded in June against a decline in May.
On Wall Street on Friday, the S & P and Nasdaq fell after lucrative companies with Amazon, Exxon Mobil and Starbucks disappointed.
However, the Dow finished up and set an intraday record, boosted by strong Chevron earnings.
US corporate profits generally came better than expected in the second quarter. More than half of the earnings season, S & P 500 companies are on track to increase profits by 10.8%, according to Thomson Reuters I / B / E / S.
Futures Mini S & S & P fell nearly 0.1 percent on Monday.
The dollar index, which tracks the greenback against a basket of six major rivals, rose 0.15% to 93,396, after declining 0.6% on Friday.
Markets are awaiting the speech of Cleveland Fed Chairman Loretta Mester and Fed Chairman San Williams John Williams for a better understanding of whether the central bank has become pessimistic in the light Of inflation has recently declined.