Asia starts data-heavy week with gains; dollar strengthens

Asian shares turned positive on Monday, shrugging off a new North Korean missile test as investors turned their attention to a raft of global economic data and earnings this week, while the dollar crept up but remained capped by US political concerns. European stocks look set for a muted start, with financial spreadbetter CMC Markets expecting Britain’s FTSE 100, Germany’s DAX and France’s CAC 40 to all open little-changed

SINGAPORE — Asian shares turned positive on Monday, shrugging off a new North Korean missile test as investors turned their attention to a raft of global economic data and earnings this week, while the dollar crept up but remained capped by US political concerns.

European stocks look set for a muted start, with financial spreadbetter CMC Markets expecting Britain’s FTSE 100, Germany’s DAX and France’s CAC 40 to all open little-changed.

MSCI’s broadest index of AsiaPacific shares outside Japan reversed early losses to rise 0.25%.

Chinese shares rose, buoyed by several leading companies’ forecasts for strong mid-year earnings. The blue- chip index and the Shanghai Composite both rose 0.60%. Hong Kong’s Hang Seng climbed 1% to a two-year high.

That strong performance came despite a slip in off icial Chinese manufacturing and services purchasing managers’ indices in July, although they stayed above the 50-point mark that separates growth from contraction on a monthly basis.

Investors remained wary after North Korea conducted a missile test late on Friday that it said proved its ability to strike the US mainland. The US responded by flying two bombers over the Korean peninsula on Sunday.

But early jitters dissipated, with the Korean won reversing losses. The dollar was down 0.20% at 1,120.70 won, after jumping almost 0.70% on Friday. South Korea’s KOSPI fell 0.20%.

The perceived safe- haven Japanese yen strengthened, with the dollar shedding 0.15% to ¥ 110.545, touching its weakest since mid-June.

“The geopolitical overhang will likely keep topside moves in check early in the week as the disorganized US and China policy towards North Korea is not helping matters,” Stephen Innes, head of Asia-Pacific trading at OANDA, wrote in a note.

The Nikkei was flat, with the firm yen offsetting news that Japan’s industrial output rebounded in June from a decline in May.

On Wall Street on Friday, the S&P and Nasdaq indices fell after earnings from companies including Amazon, Exxon Mobil and Starbucks disappointed. But the Dow closed higher and set an intraday record, lifted by Chevron’s strong earnings. US corporate results overall have come in better than expected for the second quarter. More than halfway through reporting season, S&P 500 companies are on track to have increased earnings by 10.80%, according to Thomson Reuters I/B/E/S. —