Asian stocks were off to a positive start early Wednesday, inspired by a positive finish on Wall Street and underpinned by a three-day rally in crude oil prices.
Overnight, U.S. stocks closed higher for the second consecutive day, with all indices piling on more than 1 percent, encouraged by hopes of a deal on Greek debt and as traders picked up faith that oil had hit bottom after a seven-month rout. Up for a third straight day on Tuesday, U.S. crude closed up $3.48 at $53.05 per barrel, marking its highest settlement this year. Benchmark Brent crude oil was up $3 at $58 a barrel.
“I think we’ve seen the lows for the year, even though the cutting down of capex and oil rigs may take 6 months to 2 years before supply tightens,” Daniel Morgan, global commodities analyst at UBS, told CNBC’s “The Rundown.” “Financially, oil prices have been sold off too aggressively so it’s poised for a comeback now.”