Asian stock markets trade mixed following IMF decision to cut UK growth forecast

While Asian stock market indices were trading mixed on Wednesday (20 July), the Shanghai Composite Index was down 0.03% at 3,035.79 as of 5.07am GMT, following the International Monetary Fund (IMF) cutting the economic growth forecast for the UK post Brexit. However, the IMF ruled out a recession in Britain.

As per IMF's World Economic Outlook, the UK's economy is now forecast to grow at 1.7% in 2016, against the earlier 1.9% growth projection, which it blamed on expectations of a "significant" fall in domestic demand". For 2017, the forecast took a deeper hit, down from 2.2% to 1.3%.

The mixed trading in Asia also followed a mixed close on Wall Street overnight. While the S&P 500 index closed lower, the Dow Jones Index closed higher. This was amid mixed second-quarter earnings results in the US, according to a news report.

Indices in the rest of Asia traded as follows on 20 July at 5.33am GMT:

Overnight (19July), the Dow Jones Industrial Average closed at 18,559.01, up 0.14%, while the FTSE 100 closed at 6,697.37, up 0.03%

Among commodities, oil prices recovered after touching two-month lows amid oversupply concerns. While WTI crude oil was trading higher by 0.31% at $44.79 (£34.19,€40.67) a barrel, Brent crude was trading 0.26% higher at $46.78 a barrel as of 5.43am GMT.