Asian Stock Markets Recover Despite Weak Oil

Most Asian stock markets ended higher on Wednesday despite further falls in oil prices and growing concerns over the eurozone’s economy.

Following its worst day since March, Japan’s Nikkei 225 finished the trading day little changed at 16,885.33.

Brent crude oil prices dipped below $50 a barrel for the first time since May 2009 to $49.92.

US crude also fell below $50 to $47.92 and the price has now more than halved since mid-2014.

In addition to worries over oil prices and the political turmoil in Greece, a survey published on Tuesday indicating the eurozone saw anaemic growth in December further fuelled investor concerns.

However, investors in China shrugged off the global news with shares heading higher.

The Shanghai Composite ended up 0.7% at 3,373.95, while in Hong Kong the Hang Seng closed up 0.8% at 23,681.26.

Energy shares hit
Australia’s share market remained in negative territory all day, with the S&P/ASX 200 closing down 0.2% at 5,353.61 points, with shares in energy firms bring hit by the falling oil prices.

Shares in Santos, one of the nation’s major oil and gas exploration firms, were down more than 1.3% at the end of the trading day, while resource giant BHP Billiton’s shares finished flat.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza