Stocks mostly higher before US-Russia summit

TOKYO: Stocks were mostly up Friday after better-than-expected Japanese growth, although weak Chinese data hit the Hang Seng, and oil slipped back ahead of a US-Russia summit on Ukraine.

Wall Street finished little changed on Thursday as wholesale inflation data tempered optimism about the US Federal Reserve cutting interest rates. US Treasuries edged up.

A quarter-point cut is still expected, but a larger half-point rate cut is likely "off the table", said Jack Ablin of Cresset Capital Management.

Japan's economy grew 0.3% in the three months to June, while output for the previous period was revised upwards, averting a recession for the world's number four economy.

The expansion came despite tariffs imposed by US President Donald Trump on Japanese imports, including on cars an industry accounting for 8% of Japanese jobs.

Tokyo's Nikkei, which hit new records this week, was up 1.7% on Friday while Shanghai, Seoul and Sydney also moved higher.

In Europe, London, Paris and Frankfurt all saw early gains.
But Hong Kong's Hang Seng fell for the second day after Chinese retail sales and industrial production grew more slowly than expected last month.

A long-term crisis in China's real estate sector and high youth unemployment have been weighing on consumer sentiment for several years.

The situation has worsened with the heightened turmoil sparked by Trump's trade war, with the two sides recently extending a truce.

Oil prices dipped, reversing gains on Thursday ahead of Trump's Alaska summit with Russian President Vladimir Putin on ending the Ukraine war.

"I am president, and he's not going to mess around with me," Trump said.
Oil traders are worried "that if the meeting doesn't go well, we'll see stronger sanctions on Russian oil, thereby depriving the world of or making it... difficult for this oil to get to the market", said Stephen Schork of the Schork Group.

Key figures at around 0700 GMT 

Tokyo - Nikkei 225: UP 1.7% at 43,378.31 (close)

Hong Kong - Hang Seng Index: DOWN 1.0 % at 25,264.47

Shanghai - Composite: UP 0.8% at 3,696.77

London - FTSE 100: UP 0.4% at 9,217.92

Euro/dollar: UP at $1.677 from $1.1657 on Thursday

Pound/dollar: UP at $1.3555 from $1.3535

Dollar/yen: DOWN at 147.07 yen from 147.76

Euro/pound: UP at 86.14 pence from 86.05 pence

West Texas Intermediate: DOWN 0.7% at $63.51 per barrel

Brent North Sea Crude: DOWN 0.6% at $66.44 per barrel

By RSS/AFP