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Home / Business / Asian stocks steadily after decline, oil jumps on Saudi Arabian comments

Asian stocks steadily after decline, oil jumps on Saudi Arabian comments



SHANGHAI (Reuters) – Asian stocks stood firm on Monday when investors caught their breath after a week of rising trade tensions in the US and China, with emotions being burned after the US said it would lift tariffs in North America.

FILE PHOTO: A man looks at an electronic board showing the Nikkei index outside a brokerage in Tokyo, Japan, January 7, 2019. REUTERS / Kim Kyung-Hoon

MSCI's widest index for Asia-Pacific shares outside Japan Added 0.6%, reflecting modest gains across markets across the region after the broad index finished the lowest since January 24 on Friday, down 3% for the week.

Australian stocks supported the tighter mood of the market, jumped 1.7% after the Mid-Right Liberal National Coalition pulled off a shocking woman in federal elections, and beat the left Labor Party.

The election results also appear to lift markets in India. India's NSE Stock Futures listed in Singapore rose 2.4% and the rupee boosted by baseline statistics showed Indian Prime Minister Narendra Modi is likely to return to power with even greater majority in parliament.

Stocks in the trading-sensitive markets of South Korea and Taiwan also rose. Taiwan's weighted index increased by 0.3% and Seoul's KOSPI rose 0.6%.

U.S .. S & P 500 e-mini futures were also higher and increased 0.3% after losses on Wall Street on Friday.

"We've had so unstable a few days in terms of statements and interpretations of what's happening to this potential commercial war. And I think the news bits we had over the weekend seem to indicate that Trump's approach to tariffs internationally," Jim said. McCafferty, head of equity research, Asia outside Japan at Nomura.

On Friday, the United States announced that it would remove tariffs on Canadian steel and aluminum, and urged Canada's Foreign Minister to ratify the swift ratification of a new North American trade agreement.

"I think people might think that a similar strategy could be used for Asia," McCafferty said, referring to raising tariffs.

The cautious optimism failed to lift Chinese bluebells, which fell 1%.

Japan's Nikkei stock index increased by 0.3%, after data showed growth in the world's third largest economy unexpectedly accelerated in the first quarter.

However, modest gains on Monday nonetheless came as the financial markets kept abreast of the intensifying trade war between Korea and the United States, and Trump administration last week allowed Huawei Technologies Co Ltd to become a trading blacklist.

The effect of this feature was evident as Alphabet Inc's Google-suspended business with Huawei, which requires the transfer of hardware, software, and technical services, except those that are available for public access through open source licensing.

Google's suspension of business with Huawei "signals that even though trade negotiations are characterized as stopping, when we are important in China, it says there is no point that US dealers come to Beijing under today's circumstances as they did on Friday, so Seems the chance of a G20 deal being more distant, "said McKenna Macro's strategist McKenna in a note to clients.

He noted the Fortress War, continued uncertainty over Brexit and increasing tensions between the US and Iran," McKenna said. The time "headline trade."

"(It is) too early to see the financial consequences of the battle escalate. And such beliefs can be suspended at that time, "he said.

Oil Pump

Rising tensions in the Middle East, which supported oil prices, sprang up in another notch this weekend when US President Donald Trump issued new threats and forced that a conflict with Iran would be the "official end" of that country.

But there were comments from Saudi Arabia's Minister of Energy that had the most immediate effect on Monday's raw prices.

Saudi Energy Minister Khalid al-Falih said that there was consensus among the members of the organization for the petroleum exporting countries to maintain production cuts to cautiously reduce inventories.

Both US crude and Brent commodities jumped more than 1.4% following ministerial comments, with West Texas Intermediate retrieving $ 63, 66 per barrel and Brent commodity at $ 73.27 per barrel.

In foreign exchange markets, China's offshore yuan restored after touching the weakest against the dollar since Nov. ember on Friday, it was the last trade at 6.9351 per dollar.

On onshore trading on Friday, the yuan had weakened beyond the psychologically important 6.9 per dollar level eventually to its softest for 19 weeks. Sources told Reuters that the country's central bank is expected to use currency exchange and monetary policy tools to halt the weaker past the 7-per-dollar short-term level.

People's Bank of China said on Sunday that it would maintain basic stability in the yuan exchange rate within a "reasonable and balanced range".

Ushore yuan strengthened to 6,9081 per dollar on Monday.

The dollar rose 0.12% against the yen to 110.20, while the euro was barely changed to $ 1.1555. The dollar index, which tracks the greenback against a basket of six major rivals, had a hair width of 98,018.

The benchmark portfolio yield 10-year government bonds rose to 2,4015% compared to a US 2,393% presence on Friday, while the two-year return affected 2,2146%, up from Friday's US closed at 2,202%.

Gold trimmed previous gains on the modest revival of risk willingness, led to $ 1,276.91 per ounce.

Editing by Shri Navaratnam and Jacqueline Wong

Our Standards: Thomson Reuters Trust Principles.

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