Asian heavyweights rally on lower oil prices

Asian equity markets rise as crude falls

The North Asian energy-importing heavyweights are booking impressive gains today as Brent crude slumped to around USD 100 a barrel overnight. In contrast, Wall Street had a restrained session as hawkish FOMC Minutes push US yields higher and tempered that genetically programmed urge to by the dip. Still Wall Street did manage modest gains, thanks to decent US data elsewhere. The S&P 500 gained 0.36%, the Nasdaq added 0.35%, while the Dow Jones rose 0.23%. US futures are slightly higher in Asia, the S&P and Dow adding 0.10%, with the Nasdaq futures rising by 0.35%, following the Asian heavyweights for a change.

In Asia, lower oil prices and a still-weak yen have propelled the Nikkei 225 1.45% higher, with South Korea’s Kospi having leapt 2.0% higher. Mainland China markets are also rallying, but less so as Covid restriction fears permeate. Still, the Shanghai Composite has risen by 0.50%, while the CSI 300 has climbed by 0.60%. The news is not so good in Hong Kong where virus cases are accelerating, the Hang Seng has edged 0.40% lower today.

In regional markets, Taipei has had a 2.20% oil boost, with Singapore adding 0.25%. Kuala Lumpur and Jakarta are 0.15% higher, Bangkok is 0.30% higher, and Manila has unwound some of its outperformance this week, falling by 1.10%. Australian markets are still very much sticking to the script from Wall Street, with falling resource prices offsetting an impressive trade balance print today. The All Ordinaries has climbed 0.35% higher, while the ASX 200 has added 0.45%.

European markets unwound the Norwegian oil strike sell-off yesterday and may get a further boost from slumping oil prices overnight, although European natural gas prices remain the centre of focus. European markets are unlikely to replicate yesterday’s rally though but should still book a modestly positive start. ​

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.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific, from 2016 to August 2022
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley was OANDA’s Senior Market Analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV and Channel News Asia as well as in leading print publications such as The New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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