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GLOBAL MARKETS-Asia stocks subdued as China trade disappoints – Nasdaq

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Reuters


* China trade disappoints, exports and imports miss
forecasts
    * Asia markets mixed, stocks ex-Japan just short of decade
peaks
    * Major currencies becalmed, dollar tries to hold payrolls
bounce
    * Industrial commodities in demand, oil slips on supply glut

    By Wayne ColeSYDNEY, Aug 8 (Reuters) - Asian shares turned mixed on
Tuesday as disappointing Chinese trade data clouded an otherwise
bright outlook for global growth, leaving currencies and
commodities becalmed in summer doldrums.
    MSCI's broadest index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> proved relatively resilient, inching up 0.2
percent and back toward decade highs.
    South Korea <.KS11> dipped 0.1 percent, while Japan's Nikkei
<.N225> eased 0.3 percent and China's main markets <.CSI300>
dithered either side of flat.
    Futures for the main European indices were all down slightly
in early trade, with the Eurostoxx 50 <STXEc1> off 0.2 percent.
    Beijing reported exports and imports both grew much less
than expected in July, seemingly breaking a run of better
numbers from the Asian giant that had fuelled optimism on global
growth and a rally in industrial commodity prices. [nL4N1KU1OZ]
    Yet, some felt the softness was overstated.
    "Imports of commodities came in better than expected, with
the normal seasonal downturn seemingly delayed for another
month," said Daniel Hynes, a senior commodity strategist at ANZ.
    "It supports our view that the outlook for China's demand
for commodities remains broadly positive."
    Ratings agency Fitch this week lifted its outlook for the
world economy for this year and next.
    "The revisions are led by emerging markets and China in
particular, whose recovery has been more pronounced than
anticipated," said Fitch chief economist Brian Coulton.
    "Data continue to suggest a synchronised global expansion
across both advanced and emerging market economies. Spill-overs
from the rebound in emerging market demand are reflected in the
fastest growth in world trade since 2010."
    On Wall Street, the Dow <.DJI> rose 0.12 percent, while the
S&P 500 <.SPX> added 0.16 percent and the Nasdaq <.IXIC> 0.51
percent. The Dow has risen 10 sessions in a row and three more
would match the all-time winning streak in January 1987. [.N]
    Volumes were light as the news flow dried up with the U.S.
Congress and President Donald Trump on vacation and a bumper
profit season drawing to a close.

    INVESTORS ALL IN
    "Earnings have been strong, liquidity is abundant and the
message from corporate CEO's around the world was loud and
clear," said Chris Weston, chief market strategist at broker IG.
    "They are not concerned with Trump, geopolitics or trade
restrictions, they see earnings growth as the main game in town
and equity investors are aligned with this outlook."
    He noted customers' cash holdings at investment manager
Charles Schwab were historically low at just 11.5 percent of
assets. "Traders and investors are all in on this market."
    The same factors have spurred demand for a range of
industrial commodities.
    Copper futures <CMCU3> hit a two-year peak on Monday, while
Chinese rebar steel futures surged as much as 7 percent to their
highest in more than four years. [MET/L] [IRON/ORE]
    Currencies were quieter as the dollar tried to keep a grip
on the gains made after upbeat U.S. jobs data last week. Traders
are awaiting U.S. inflation data later in the week but it is
widely expected to remain tepid, adding to views the Federal
Reserve will maintain a cautious policy tightening stance.
    Against a basket of currencies, the dollar was 0.1 percent
lower at 93.339 <.DXY> and still not far from the recent
15-month trough of 92.548.
    The euro was a shade firmer at $1.1808 <EUR=>, while the
dollar eased a touch to 110.62 yen <JPY=>.
    Oil prices following a recovery in output at Libya's largest
oil field and as doubts about OPEC-led production cuts continue
to weigh on the market. [O/R]
    Brent crude futures <LCOc1> eased 11 cents to $52.26 a
barrel, while U.S. crude futures <CLc1> lost 10 cents to $49.29.

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MSCI and Nikkei chart    http://reut.rs/2sSBRiD
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 (Editing by Kim Coghill & Shri Navaratnam)
 ((Wayne.Cole@thomsonreuters.com; 612 9321 8162; Reuters
Messaging: wayne.cole.thomsonreuters.com@reuters.net))

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Keywords: GLOBAL MARKETS/ (WRAPUP 3, PIX)