· EMERGING MARKETS-Weak China data hits most Asian markets, currencies muted
Most of Asia's stock markets weakened on Friday as a surprise drop in China retail sales dented hopes of a swift recovery from the COVID-19 impact at the world's second-largest economy, while currencies stayed muted as the dollar steadied.
· Nikkei edges higher, stops short of erasing pandemic loss
Japan’s Nikkei share average eked out gains on Friday, but stopped short of a final step towards a complete recovery from its decline triggered by the coronavirus crisis.
The Nikkei ended 0.17% higher at 23,289.36, briefly hitting a six-month high for two straight sessions, but did not rise enough to close a major chart gap between 23,378 and 22,950 made in February, when signs of global spread of the COVID-19 caught investors off guard
Given risk factors such as uncertainties over U.S. stimulus and intensifying China-U.S. tensions, investors regarded profit-taking more prudent than chasing the rally further.
The broader Topix dipped 0.05% to 1,623.28, having risen 8.5% just in the first two weeks of August, supported by hopes of gradual recovery in the global economy and rapid development of COVID-19 vaccines.
· China stocks end higher as consumer shares lend support
China stocks ended higher on Friday, bolstered by gains for consumer firms, as weak consumption data reinforced expectations that Beijing will take more measures to boost domestic demand.
The blue-chip CSI300 index rose 1.5%, to 4,704.63, while the Shanghai Composite Index closed up 1.2% at 3,360.10
China’s retail sales slipped in July, dashing expectations for a modest rise, as consumers in the world’s second-largest economy failed to shake off wariness about the coronavirus, while the factory sector’s recovery struggled to pick up pace
Investors await a meeting between top U.S. and Chinese trade officials on Saturday to review the first six months of their Phase 1 trade deal
Industrial output grew 4.8% in July from a year earlier, in line with June’s growth but less than a forecast 5.1% rise.
Retail sales dropped 1.1% on year, missing predictions for a 0.1% rise and following June’s 1.8% fall.
The decline in retail sales was broad based with garments, cosmetics, home appliances and furniture all worsening from June.
A key exception was auto sales, which surged 12.3%, turning around from a 8.2% fall in June.
· European markets retreat as investors monitor coronavirus concerns; U.S. stimulus stall
European markets traded lower on Friday morning as investors monitored concerns over a second wave of coronavirus cases and awaited second-quarter euro zone GDP (gross domestic product) growth estimates.
The pan-European Stoxx 600 fell 0.6% in early deals, with travel and leisure stocks dropping 2.4% on the back of new travel restrictions as all sectors and major bourses slid into negative territory.
Reference: CNBC, Reuters
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