Asian Stocks End Mixed, Chinese Industrial Data Disappoint
- Asian stocks finished mixed after a lackluster session
- Investors mulled Friday’s softer US data and reports of another North Korean missile launch
- Chinese industrial data disappointed
What will decide Asian Markets’ fortunes though to mid-year? Check out the DailyFX Forecasts
Asian stocks retained some composure Monday in the face of many possible trouble factors, but most ended the session slightly lower.
Investors had to contend with Friday’s weaker-than-expected US economic data, widespread cyber attacks across the globe and the reported test firing of another missile by North Korea.
The Nikkei closed down 0.1%, with the ASX off 0.2%, although both indexes had pared losses into the close. Chinese stocks managed gains, reportedly soothed by official statements to the effectr that current banking risks were “completely controllable.”
The US Dollar started a new week on a defensive footing. The Dollar Index which tracks it against six major peers slipped 0.1%, and USD/JPY slipped to 113.30. Monday saw the release of plentiful Chinese data. However reasonable performances elsewhere were exlipsed by a large miss for industrial production. This rose by 6.5% in April, well below the 7% markets had been looking for.
Crude oil prices rose on wire reports that Russia, Saudi Arabia and some other OPEC members have agreed to extend production cuts by another nine months, which would effectively take them out to the end of this year. This has given the Canadian Dollar a boost and seen USD/CAD slip below 1.37.
Gold prices held up on Monday, even if they didn’t rise far. The combination of that weaker US data, the missile trest and a pressured US Dollar seems supportive.
It’s a light Monday for global data with only Canadian existing home sales and the National Association of Home Builders housing market index.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.