Markets gain as prospect of war recedes

On Monday, the risk-off mood that gripped markets last week showed signs of easing, with shares in Europe following Asian equities higher and American stock futures advancing as the prospect of a war between the U.S. and North Korea receded. Havens including gold, Treasuries and the yen fell.

The Stoxx Europe 600 Index headed for its first gain in four days, tracking increases across markets including South Korea, Australia and Hong Kong after U.S. officials moved to tamp down fears of imminent war with North Korea. Japanese equities bucked the trend as traders returned after a holiday. Most European government bonds followed Treasuries lower. Bitcoin posted yet another surge.

There was a mixed bag of data out of Asia on Monday. Japan’s second-quarter growth topped estimates, reflecting better domestic demand. China’s economy posted its worst showing this year as curbs on property, excess borrowing and industrial overcapacity began to have an impact.

The Stoxx Europe 600 Index gained 0.9 percent. The MSCI All-Country World Index increased 0.2 percent, the first advance in a week on a closing basis. The U.K.’s FTSE 100 Index jumped 0.6 percent, the largest climb in more than a week. Germany’s DAX Index gained 1.1 percent, the biggest rise in more than a week. Futures on the S&P 500 Index jumped 0.6 percent, the largest climb in almost four weeks.

Gold sank 0.8 percent to $1,279.30 an ounce, the first retreat in a week. West Texas Intermediate crude dipped 0.7 percent to $48.50 a barrel, the lowest in almost three weeks.

Japan’s Topix index finished 1.1 percent lower. South Korea’s Kospi index advanced 0.6 percent. Australia’s S&P/ASX 200 Index rose 0.7 percent. In Hong Kong, the Hang Seng Index gained 1.4 percent, while the Shanghai Composite Index rose 0.9 percent. The Japanese yen declined 0.5 percent to 109.74 per dollar, the first retreat in a week.