World markets edge up, Japanese stocks fall on economic data

Aug 17, 2020

Shares are down in Tokyo while other global markets and U.S. futures are up slightly after Japan reported a record economic contraction amid the coronavirus pandemic

BEIJING (AP) — World markets edged up on Monday though Japanese stocks sank after the country reported a record economic contraction during the coronavirus pandemic.

The Nikkei 225 in Tokyo fell 0.8% to 23,096.75 after data showed the world’s third-largest economy shrank 27.8% from a year earlier in the three months ending in June. That was bigger than the deepest decline during 2008-09 financial crisis.

“The road ahead looks choppy as a resurgence in COVID cases will weigh on domestic and overseas spending,” said Stefan Angrick of Oxford Economics in a report.

In Europe, the FTSE 100 in London gained 0.6% to 6,123. The DAX in Frankfurt was up 0.2% at 12,921 and France's CAC 40 added less than 0.1% to 4,968.

On Wall Street, futures for the benchmark S&P 500 Index and for the Dow Jones Industrial Average were up 0.3%.

The S&P 500 ended last week little changed. The index declined less than 0.1% while the Dow gained 0.1%. The The Nasdaq composite dipped 0.2%.

In Asia, the Shanghai Composite Index rose 2.3% to 3,436.80 and Hong Kong’s Hang Seng gained 0.7% to 25,347.34. South Korean markets were closed for a holiday.

The S&P-ASX 200 in Sydney shed 0.8% to 6,076.40 while India's Sensex advanced 0.3% to 37,994.08. New Zealand advanced while Singapore and Bangkok declined.

Bangkok's main index lost 0.5% after Thailand reported its economy shrank 12.2% from a year earlier in the quarter ending in June. That was its worst performance since 1998 during the Asian financial crisis.

Investors in Asia were looking ahead to central bank meetings this week in China, Indonesia and the Philippines, with few other market-moving events in sight.

In the United States, economists say consumer spending could be under more pressure after government aid including additional $600 weekly unemployment benefits expired. Investors are counting on Washington for another economic lifeline, but legislators are far apart on a possible package.

In energy markets, benchmark U.S. crude dropped 8 cents to $41.93 per barrel in electronic trading on the New York Mercantile Exchange. The contract slipped 23 cents on Friday to settle at $42.01. Brent crude, the standard for international oil prices, shed 15 cents to $44.65 per barrel in London. It 16 cents the previous session to $44.80.

The dollar declined to 106.28 yen from Friday’s 106.59 yen. The euro gained to $1.1858 from $1.1843.