Asian stocks trade narrowly mixed as markets await China data

FAN Editor

Asian stocks were narrowly mixed early on Monday after a perceived easing in rhetoric in the U.S.-China trade dispute late last week. Investors also awaited the release of a barrage of China economic data due later in the day.

South Korean stocks traded slightly lower, with the Kospi slipping 0.05 percent. Bank stocks declined, weighing on the broader index, but major technology names were mixed in early trade, with Samsung Electronics gaining 0.32 percent but SK Hynix pulling back by 0.56 percent. The tech-heavy Kosdaq rose 0.23 percent.

In Australia, the S&P/ASX 200 inched higher by 0.08 percent, with the heavily weighted financials subindex rising 0.24 percent in early morning trade.

Meanwhile, markets in Japan are closed for a holiday on Monday.

The sideways trade came on the back of gains on Wall Street in the previous session. The S&P 500 added 0.11 percent to end at 2,801.31, closing the session above the 2,800 level for the first time since Feb. 1. Other U.S. indexes also finished the day in positive territory.

Despite the broader increase stateside, bank stocks dipped as markets digested the release of second-quarter earnings. Just over 5 percent of S&P 500 companies have reported second-quarter results so far. Analysts polled by FactSet expect second-quarter earnings to have grown by 20 percent.

Still, the overall gains came amid relief among investors over the lack of fresh, negative trade war headlines, according to analysts, with major U.S. indexes posting strong gains for the week. A similar picture was seen in Asia last week, with markets finishing the week higher.

That had come after stocks initially slid following the Trump administration releasing a list of $200 billion in Chinese goods that could be subject to new tariffs, firing the latest shot in the trade dispute between the U.S. and China. The announced duties will only take effect following a review process and come on the heels of U.S. tariffs on $34 billion in Chinese products taking effect earlier in the month.

Over in Asia, Chinese stock exchanges said the connect scheme linking Hong Kong and the mainland would not extend to firms with weighted voting rights structure, Reuters reported. That would mean that shares of Xiaomi, which recently began trade in the Hong Kong market, will not be accessible to investors on the mainland under the connect program.

In currencies, the dollar index, which tracks the U.S. dollar against a basket of currencies, traded at 94.762 at 8:00 a.m. HK/SIN. Against the yen, the dollar traded at 112.39.

Here’s the economic calendar for Monday (all times in HK/SIN):

  • 10:00 a.m.: China second-quarter GDP
  • 10:00 a.m.: China fixed asset investment, industrial production and retail sales

— CNBC’s Fred Imbert contributed to this report.

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