Recovery supports Asia stocks, dollar edges up

July 17, 2015 5:02 AM

Spreadbetters expected Britain's FTSE, Germany's DAX and France's CAC to open slightly lower, reflecting a tepid performance by most Asian stocks with the exception of buoyant Chinese shares.

Investors look at computer screens in front of an electronic board showing stock information at a brokerage house in Shanghai, China, July 14, 2015. REUTERS/Aly Song

Asian stocks nudged up on Friday as China's markets extended their recovery, while the dollar stretched gains versus the euro and yen as economic indicators reinforced expectations for a U.S. rate hike by the end of this year.

Spreadbetters expected Britain's FTSE,Germany's DAX and France's CAC to open slightly lower, reflecting a tepid performance by most Asian stocks with the exception of buoyant Chinese shares.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 percent as Chinese shares recovered further after a series of government support measures to halt their recent crash.

Advancing for the second straight day, Shanghai shares were up 2 percent as of 0520 GMT.

"Also we suspected the 'national team' has continued buying shares today to prevent the market from falling," said Zhang Qi, a stock analyst at Haitong Securities in Shanghai.

"National team" has become a commonly used collective term in China for the government agencies, banks, brokerages and mutual funds that are committed to buy into the market until wider investor confidence is restored.

Although drastic government measures have managed to stem its slide, the benchmark Shanghai index was set to end the week little changed. It is still down roughly 20 percent from a 7-1/2-year peak reached a month ago.

Japan's Nikkei rose 0.2 percent on a softer yen and up 4 percent on the week. South Korea's Kospi shed 0.5 percent on concerns second quarter corporate earnings could prove disappointing, particularly among ship builders.