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Friday May 7th, 2021
International news

Asian markets swing after recent gains; oil up

AFP – Most Asian markets fluctuated Monday as investors took a step back after last week’s rally, though the mood remains upbeat after the China-US trade pact was signed, while the global outlook appears a little rosier.

Focus now turns to the release of corporate earnings, with big US names including Netflix, IMB and Hyundai due to report over the coming days.

Friday’s broadly healthy Chinese data provided some reassurance to traders, indicating a growth slowdown in the world’s number two economy may have bottomed out, and suggesting this year could see some improvement.

“We are entering 2020 on a more stable footing with economies globally stabilising and looking like they’re turning up, and the phase one trade deal,” Anne Anderson, of UBS Asset Management, told Bloomberg TV. “So it’s a bit more positive with regard to the economic fundamentals.”

The positive sentiment helped Wall Street to chalk up more records, though there are worries the upward momentum could slow and gains could trigger some profit-taking soon.

Still, traders remain upbeat and Tokyo ended the morning up 0.3 percent, while Shanghai and Sydney each gained 0.3 percent. Seoul piled on more than one percent while Taipei was also up.

But Hong Kong struggled to build on last week’s advances and was slightly lower in the morning, with Singapore, Jakarta and Manila also in the red.

However, AxiTrader’s Stephen Innes said the general outlook was for further rises.

“There’s a belief that global growth will continue to pick up speed over the coming months, as significant downside risks to the global economy have been turned aside, and worries over a possible recession have diminished, with the data giving credence to the possibility,” he said in a note.

Oil prices rose more than one percent on supply concerns after exports from Libya, which has been riven by fighting between rival factions since a 2011 NATO-backed uprising, were blocked after a pipeline was shut down by armed forces.

And in Iraq, which is OPEC’s second biggest producer, a strike at a key oil field hit output. There are also fears that long-simmering tensions could explode into major unrest, with matters not helped by the assassination in the country this month of Iran’s top general.
– Key figures around 0230 GMT –

Tokyo – Nikkei 225: UP 0.3 percent at 24,101.29 (break)

Hong Kong – Hang Seng: DOWN 0.1 percent at 29,037.81

Shanghai – Composite: UP 0.3 percent at 3,083.69

Euro/dollar: UP at $1.1096 from $1.1093 at 2200 GMT Friday

Pound/dollar: DOWN at $1.3000 from $1.3010

Euro/pound: UP at 85.33 pence from 85.27 pence

Dollar/yen: UP at 110.17 yen from 110.12 yen

Brent Crude: UP 78 cents $65.63 per barrel

West Texas Intermediate: UP 62 cents at $59.16

New York – DOW: UP 0.2 percent at 29,348.10 (close)

London – FTSE 100: UP 0.9 percent at 7,674.56 (close)

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