World News | World Markets Edge Up, Japanese Stocks Fall on Economic Data

Beijing, Aug 17 (AP) World markets edged up on Monday though Japanese stocks sank after the country reported a record economic contraction during the coronavirus pandemic.

The Nikkei 225 in Tokyo fell 0.8 per cent to 23,096.75 after data showed the world's third-largest economy shrank 27.8 per cent from a year earlier in the three months ending in June.

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That was bigger than the deepest decline during 2008-09 financial crisis.

“The road ahead looks choppy as a resurgence in COVID cases will weigh on domestic and overseas spending,” said Stefan Angrick of Oxford Economics in a report.

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In Europe, the FTSE 100 in London gained 0.6per cent to 6,123. The DAX in Frankfurt was up 0.2 per cent at 12,921 and France's CAC 40 added less than 0.1 per cent to 4,968.

On Wall Street, futures for the benchmark S&P 500 Index and for the Dow Jones Industrial Average were up 0.3 per cent.

The S&P 500 ended last week little changed. The index declined less than 0.1 per cent while the Dow gained 0.1per cent. The The Nasdaq composite dipped 0.2 per cent.

In Asia, the Shanghai Composite Index rose 2.3 per cent to 3,436.80 and Hong Kong's Hang Seng gained 0.7 per cent to 25,347.34. South Korean markets were closed for a holiday.

The S&P-ASX 200 in Sydney shed 0.8 per cent to 6,076.40 while India's Sensex advanced 0.3 per cent to 37,994.08. New Zealand advanced while Singapore and Bangkok declined.

Bangkok's main index lost 0.5 per cent after Thailand reported its economy shrank 12.2 per cent from a year earlier in the quarter ending in June. That was its worst performance since 1998 during the Asian financial crisis.

Investors in Asia were looking ahead to central bank meetings this week in China, Indonesia and the Philippines, with few other market-moving events in sight.

In the United States, economists say consumer spending could be under more pressure after government aid including additional USD600 weekly unemployment benefits expired.

Investors are counting on Washington for another economic lifeline, but legislators are far apart on a possible package.

In energy markets, benchmark U.S. crude dropped 8 cents to USD 41.93 per barrel in electronic trading on the New York Mercantile Exchange. The contract slipped 23 cents on Friday to settle at USD 42.01.

Brent crude, the standard for international oil prices, shed 15 cents to USD 44.65 per barrel in London. It 16 cents the previous session to USD 44.80.

The dollar declined to 106.28 yen from Friday's 106.59 yen. The euro gained to USD 1.1858 from USD 1.1843. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)