Asian Shares Slide on OPEC Skepticism

The oil gloom hit Asia’s biggest energy stocks. In Australia, Woodside Petroleum was down 2.5% and BHP Billiton, whose second-biggest division is petroleum, was down 2.3%. Japanese oil explorer Inpex was down 1.7% and in Hong Kong, Chinese oil major Cnooc fell 1.4%.

The drop in oil prices is hitting U.S. inflation expectations, which has pulled down U.S. Treasury yields, which has finally knocked back a lengthy dollar rally.

The yield on 10-year U.S. Treasurys was last at 2.330%, down from 2.359% on Friday, according to Thomson Reuters.

Asian currencies were broadly up Monday. The Korean won gained 0.4% and the Singapore dollar rose by 0.5%.

The Japanese yen was the biggest gainer in Asia on Monday, rising 1.3%, partly as traders sought the safety of the yen on the view OPEC’s production deal was unraveling.

“Guys are very very nervous about the oil scenario and you see that expressed in the sensitive pair,” said Oanda senior foreign-exchange trader Stephen Innes, referring to the U.S. dollar and the yen.

THE WALL STREET JOURNAL

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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