BEIJING – Asian stock markets were mixed Monday after a Japanese manufacturing indicator showed conditions improving, a glimmer of upbeat news for Prime Minister Shinzo Abe after a resounding defeat of his ruling Liberal Democratic Party in Tokyo municipal elections on Sunday.
Continue Reading Below
KEEPING SCORE: The Shanghai Composite Index declined 0.3 percent to 3,181.20 while Tokyo's Nikkei 225 gained 0.2 percent to 20,067.88. Hong Kong's Hang Seng retreated 0.1 percent to 25,723.45 and Sydney's S&P-ASX 200 was unchanged at 5,724.70. Seoul's Kospi was unchanged at 2,392.30. Jakarta and Singapore gained while New Zealand, Taiwan and Manila declined.
JAPANESE MANUFACTURING: The central bank's Tankan survey of large manufacturers found they believe business conditions are improving and plan to increase investment as export demand recovers. A separate survey of factory purchasing managers also indicated the outlook improved in June for the 10th straight month. Stronger demand from China and other Asian markets is driving a recovery but forecasts suggest conditions will deteriorate.
ANALYST'S TAKE: "Asian markets are set for a mixed start to the week with early movers clocking next to neutral changes from the lack of strong leads," said Jingyi Pan of IG in a report. The Tankan "yielded surprisingly positive results," said Pan. "Both large manufacturer's index and outlook had surprised on the upside and certainly helped to counter some of the pressure from a stronger JPY and concerns over the election results over the weekend."
WALL STREET: Wall Street ended the second quarter with slight gains. Industrial stocks and consumer-focused companies led the gainers. Energy stocks rose as crude oil prices closed higher for a seventh day. Utilities, technology and health care companies were among the biggest decliners. The Standard & Poor's 500 index gained 0.2 percent to 2,423.41. The Dow Jones industrial average rose 0.3 percent to 21,349.63. The Nasdaq lost 0.1 percent to 6,140.42.
KOREAN EXPORTS: Exports in June rose but the gains were overshadowed by U.S. President Donald Trump's demand to renegotiate a 2012 trade agreement. Exports increased by 13.7 percent over a year earlier, driven by sales of electronics and ships. Growth was faster than May but below forecasts. The trade surplus widened to $11.4 billion. Korean analysts warn, however, that the trade outlook is clouded by Trump's demand Friday during a visit to Washington by his Korean counterpart, Moon Jae-in, for changes to a trade agreement that he said would be aimed at narrowing the U.S. trade deficit with South Korea.
Continue Reading Below
ENERGY: Benchmark U.S. crude gained 14 cents to $46.18 per barrel in electronic trading on the New York Mercantile Exchange. The contract soared $1.11 on Friday to close at $46.04. Brent crude, used to price international oils, added 7 cents to $48.84 in London. It jumped $1.14 the previous session.
CURRENCY: The dollar rose to 112.44 yen from 112.34 yen. The euro declined to $1.1408 from Friday's $1.1427.