Europe stocks rebound, Asia subdued by China data

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European stocks bounced back Monday from Ukraine-related selling while Asian markets were subdued by further signs of weakness in China’s property market.

KEEPING SCORE: Germany’s DAX jumped 1.5 percent to 9,229.97 and France’s CAC 40 added 1.2 percent to 4,225.37. Britain’s FTSE 100 rose 0.6 percent to 6,726.92. European markets tumbled Friday on reports Ukraine destroyed a Russian military convoy that had entered its east. Futures pointed to gains on Wall Street, with Dow futures up 0.4 percent to 16,705. S&P 500 futures added 0.4 percent to 1,961.

ASIA’S DAY: Trading was cautious after Friday’s selling spasm in Europe and on Wall Street. Weak China property prices added to the caution. Japan’s Nikkei 225 inched up 0.1 percent to 15,322.60 while Seoul’s Kospi dropped 0.5 percent at 2,053.13. Hong Kong’s Hang Seng was little changed at 24,955.46 but China’s Shanghai Composite added 0.6 percent to 2,239.47. Australia’s S&P/ASX 200 rose 0.4 percent to 5,587.10. Southeast Asian markets were mixed. Taiwan’s benchmark fell 0.7 percent.

CHINA CHILL: A fall in China’s residential property prices for July added to other recent signs of economic softening. Government data showed prices decreased in 64 out of 70 cities for new apartments. For secondhand apartments, prices decreased in 65 of the 70 cities. “Given weakness remains rampant in certain parts of China’s economy, there have been growing calls for further stimulus measures recently,” said IG strategist Stan Shamu.

UKRAINE: Ukrainian army troops penetrated deep inside a city controlled by pro-Russian rebels in eastern Ukraine in what could prove a breakthrough development in the four-month-long conflict, the Ukrainian government said Sunday. That came after NATO on Friday said a Russian military column ventured into Ukraine, and the Ukrainian president said his forces destroyed most of it. Russia denied it.

JACKSON HOLE: Central bankers, policy experts and academics from around the world meet at Jackson Hole, Wyoming for an annual talkfest later this week. Federal Reserve Chair Janet Yellen’s speech Friday on the U.S. labor market is expected to “reiterate her views that slack remains substantial, and that the Fed should keep monetary policy accommodative still in order to address that,” Mihuzo Bank said in a commentary.

ENERGY: Oil is trading near its lowest since April after fears of supply disruptions from major producer Iraq faded, removing much of the risk premium that built up in May and June. The benchmark U.S. crude futures contract was down 93 cents at $96.42 a barrel in electronic trading on the New York Mercantile Exchange.

CURRENCIES: The euro dropped to $1.3390 from $1.3399 late Friday. The dollar rose to 102.46 yen from 102.36 yen.

Associated Press

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