Asian stocks mixed on Turkey coup attempt, better China data

AP News
Posted: Jul 17, 2016 11:51 PM

BEIJING (AP) — Asian stock markets were mixed Monday after Wall Street ended the week up, a Turkish military coup failed and China reported better economic data.

KEEPING SCORE: The Shanghai Composite Index lost 0.5 percent to 3,038.69 points while Sydney's S&P-ASX 200 rose 0.5 percent to 5,455.20. Hong Kong's Hang Seng rose 0.1 percent to 21,674.28 and Seoul's Kospi was unchanged at 2,017.13. Japanese markets were closed for a holiday. Benchmarks in Singapore and New Zealand gained while the Philippines and Indonesia retreated.

WALL STREET: All three major stock indexes ended up for a third straight week after the government reported stronger consumer sales. The Commerce Department said retail spending rose 2.7 percent in June from a year earlier. The Labor Department reported consumer prices rose a modest 1 percent in June from a year ago, suggesting that the Federal Reserve may take its time raising interest rates from the record lows that have helped push stocks higher. The Dow Jones industrial average gained 10.14 points, or 0.1 percent, to 18,516.55. The Standard & Poor's 500 index slipped 2.01 points, or 0.1 percent, to 2,161.74. The Nasdaq composite lost 4.47 points, or 0.1 percent, to end at 5,029.59.

TURKEY'S COUP: Emerging market stocks were jolted by Friday's failed coup attempt, but financial analysts said the downturn was likely to be short. The Russian ruble, Mexican peso, South African rand and other currencies fell against the dollar. "A bit of a pullback may be in order in the wake of the Turkish coup, but the hunt for yield in this global low rate environment is likely to see funds flow back in into higher yielding EM assets," said Angus Nicholson of IG in a report.

CHINA'S OUTLOOK: Growth in the world's second-largest economy held steady at 6.7 percent over a year earlier in the second quarter of the year, supported by better-than-expected factory output and retail sales. That prompted suggestions that efforts to reverse a steady decline in growth are gaining traction, though some analysts warned the second half might be more challenging. "The outlook towards risk assets is further supported by better than expected China data," said Citigroup analysts in a report. "Together with stability in renminbi this is likely to diffuse the tail risks investors worry about."

ENERGY: Benchmark U.S. crude added 2 cents to $45.97 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 27 cents on Friday to close at $45.95. Brent crude, used to price international oils, advanced 20 cents to $47.81 per barrel in London. The contract gained 24 cents the previous session to $47.61.

CURRENCY: The dollar rose to 105.52 yen from Friday's 104.81 yen. The euro edged up to $1.1062 from $1.1037.