Asian markets mostly up despite downbeat Japan data

Hong Kong — Asian markets were mostly up on Monday despite Japan posting lower-than-expected economic growth and off the back of US stocks retreating from record peaks last week.

 

Tokyo stocks were flat by the break adding a negligible 0.10 points to 13,615.29, while Sydney rose 0.64 percent and Seoul was up 0.39 percent.

 

Hong Kong led the gains jumping 1.64 percent while Shanghai also rose 1.21 percent, buoyed by positive economic data out of China late last week.

 

On Friday, China reported industrial growth for July reached a five-month high, easing fears that the world's second largest economy was heading towards a slowdown.

 

Industrial production, which measures output at factories, workshops and mines, rose 9.7 percent year-on-year, well above analyst expectations.

 

In contrast, disappointing figures out of Japan Monday showed economic growth in the world's third largest economy slowed in the April-June quarter, raising questions about Tokyo's bid to revive its economy after years of stagnation.

 

The Cabinet office said Japan's economy expanded by 0.6 percent from the previous quarter, slower than a revised 0.9 percent increase between January and March.

 

The figures indicate an annualized increase of 2.6 percent, down from the 4.1 percent annual rate in the first three months of the year.

 

The markets will now look to key US economic figures—including retail sales and industrial output—which are due out this week as investors eye clues as to when the US Federal Reserve will start rolling back its huge stimulus drive.

 

US stocks last week retreated from record peaks and finished lower after a sluggish week that was light on news and trading volume.

 

The Dow Jones Industrial Average closed down 1.49 percent at 15,425.51 while the Nasdaq Composite Index retreated 0.80 percent to 3,660.11.

 

With investor spirits deflated off the back of Japan's disappointing growth data the dollar retreated against the yen.

 

In morning Tokyo trading, the greenback stood at ¥96.05, softening from ¥96.24 in New York Friday.

 

The euro bought $1.3336 and ¥128.28, nearly flat from $1.3338 and ¥128.35 in US markets.

 

In oil markets, New York's main contract, West Texas Intermediate for delivery in September, was down seven cents to $105.90 a barrel in mid-morning Asian trade and Brent North Sea crude for September shed 25 cents to $107.97.

 

Gold was at $1,329.63 at 0300 GMT compared with $1,309 late Friday. — Agence France-Presse