Oil extended losses to a seventh day, with prices heading toward a bear market, with data projected to show the record U.S. stockpile expanding before the Federal Reserve’s monetary policy decision. Asian shares rallied amid speculation China may do more to boost growth.
West Texas Intermediate crude slid 2.1 percent to $42.56 a barrel by 3:15 p.m. in Tokyo. The Bloomberg Dollar Spot Index erased earlier losses, with the euro slipping 0.1 percent and the currencies of New Zealand and Malaysia weakening. The MSCI Asia Pacific Index rose a second day, led by Chinese shares in Hong Kong. Futures on the Standard & Poor’s 500 index were 0.1 percent higher.
“All attention is on the Fed,” said Ratch Sodsatit, Bangkok-based managing director of Asset Plus Fund Management Co., which oversees about $972 million of assets. “Everyone knows that U.S. rates are on the rise so the biggest focus for uncertainty is on the timing and how the economy is tolerating the stronger dollar. Crude oil is going to be at these levels for a while, which should benefit Asian economies and especially China. Low inflation will enable authorities to ease more.”
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