Asian markets mixed after strong Japan GDP

Spreadbetters expected the upward momentum for equities to continue in Europe, forecasting Britain's FTSE to open 0.2 percent higher, Germany's DAX to start 0.25 percent higher and France's CAC to open up 0.3 percent.

LONDON, Aug 14 (Reuters) - World stocks rose on Monday, attempting to recover after fears of a U.S.

Asian shares snapped their losing streak on Monday, despite weak data out of China which showed economic growth that was below forecast in multiple sectors.

Oil prices dipped on data portraying a slowdown in Chinese refining activity growth, while gold prices slipped from an over two-month high. But economists do not expect a hard landing, with the government keen to ensure stability ahead of a Communist Party leadership reshuffle in the autumn.

The Nikkei 225 fell almost 1% as markets re-opened after a public holiday last week. South Korea's Kospi rose 0.47% after being pressured by geopolitical tensions for most of the last week. Hong Kong's Hang Seng Index gained 0.94%. USA officials also played down the likelihood of a nuclear conflict with North Korea.

In the USA, economic data released on Friday showed the U.S. consumer price index edged up just 0.1% last month after it was unchanged in June.

U.S. Treasury yields, which already declined on the North Korean concerns, fell further on Friday on the soft U.S. consumer prices data.


In forex trading, the dollar bought 109.37 yen, edging up from 109.11 yen in NY on Friday, but still sharply lower than 109.99 yen in Tokyo on Thursday.

The dollar was 0.24 percent higher against the yen in early Asian trade, trading at 109.40 yen, but the greenback was flat against most of its other primary trading partners including the euro, the loonie and the pound. July retail sales also missed forecasts, rising 7.2 percent, lower than the 7.6 percent analysts expected. The US currency fell against a basket of rivals, trading as low as 92.934 on Friday compared to the 93 handle seen for most of last week. Brent crude was off 0.06 percent at Dollars 52.07 a barrel and United States crude rose 0.02 percent to trade at USD 48.83.

The yen showed little reaction to second-quarter gross domestic product data which revealed that the economy expanded for a sixth straight quarter led by private consumption and capital expenditure. Economists had expected the growth to moderate to 7.1 percent.

Brent was 9 cents lower at $52.01 a barrel.

"As long as the geopolitics ease, we look for dollar/yen to gradually grind higher, back above the 110.00 level, along with gently rising USA yields", ING Bank analysts told clients. -North Korean tensions and Friday's weak USA inflation data.

That was due to worries over the potential impact of the yen's recent surge against the dollar.

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