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Global Markets: Asia stocks waver after China data, earnings in focus

Reuters  |  TOKYO 

By Shinichi Saoshiro

(Reuters) - stocks wavered on Tuesday after data showed both hot and cold patches in the Chinese economy, but losses were limited as investors turned their focus to corporate earnings from

Spreadbetters expected European stocks to open higher following overnight Wall Street gains, with Britain's FTSE rising 0.15 percent, Germany's DAX gaining 0.3 percent and France's CAC climbing 0.3 percent.

The dollar was barely changed, with demand for safe-haven U.S. Treasuries ebbing as risk appetite improved in parts of the broader market as investors took the view that Western-led strikes on were a one-off intervention.China's grew a welcome 6.8 percent in the first quarter of 2018 from a year earlier, official data showed on Tuesday, unchanged from the previous quarter.

But separate data showed March industrial output missed expectations and first-quarter fixed-asset investment growth slowed, tempering equity market gains.

"There are two stories here, one backward looking and one forward looking," said Robert Subbaraman, for excluding at Nomura in "Underneath the stable GDP growth is quite rapid rebalancing from industrial, investment and old sectors to consumption, services and new sectors like tech. This is encouraging."

"The more timely March data, however, point to nascent signs of a growth slowdown underway, led by these old sectors," Subbaraman said.

MSCI's broadest index of shares outside edged down 0.15 percent.

South Korea's dipped 0.15 percent and Hong Kong's Hang Seng was flat.

Shanghai's index shed 0.35 percent and Japan's Nikkei was unchanged. Australian stocks gained 0.3 percent with shares gaining on higher aluminium prices.

While Saturday's missile strikes were the biggest intervention by Western countries against Syria, investor risk appetite improved on speculation that the attacks would not lead to prolonged conflict.

"The markets had been bracing for a possible escalation in following Trump's earlier warnings. Military action, however, has been limited, bringing relief," said Kota Hirayama, senior emerging at in

"That said, the underlying picture has not changed. Conflict continues in and trade issues remain unresolved. Geopolitics will impact the markets again."

The Dow gained 0.87 percent and the rose 0.8 percent on Monday, with the biggest boosts from technology and as investors were optimistic about the earnings season and appeared less worried about U.S.-led missile attacks in

companies are expected to report an 18.6 percent jump in first-quarter profit, on average, the biggest rise in seven years, according to data.

The dollar index against a basket of six major currencies was little changed at 89.415 after losing 0.4 percent overnight.

The euro was steady at $1.2382. The dollar was effectively flat at 107.055 yen

The pound rose to $1.4355, its highest since June 2016, with focus on data that could cement expectations of a May interest rate increase from the

The (HKMA) stepped into the currency market again on Tuesday, buying HK$5.77 billion ($735 million) in Hong Kong dollars as the local currency repeatedly hit the lower end of its allowable trading band.

The 10-year note yield was at 2.834 percent after rising to 2.865 on Monday, its highest since March 22.

U.S. rose 0.5 percent to $66.57 a barrel after tumbling nearly 1.8 percent overnight as concerns over tensions in the waned.

Brent crude climbed 0.3 percent to $71.66 a barrel

Aluminium hovered near seven-year highs reached the previous day after U.S. sanctions on Russian stirred supply concerns.

Aluminium on was at $2,386 per tonne after surging 5 percent to $2,403 on Monday, its highest since September 2011.

(Reporting by Shinichi Saoshiro; Additional reporting by the Hong Kong and newsrooms; Editing by and Jacqueline Wong)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 11:04 IST