Asia markets advance; oil continues gaining on highs
Asian markets were higher in Tuesday afternoon trade as investors watched developments such as the renewed conflict in key oil producer Libya.
Mainland Chinese shares gained by the morning session’s end, with the Shanghai composite adding 0.14 percent and the Shenzhen component rising around 0.74 percent. The Shenzhen composite also advanced 0.648 percent.
Meanwhile, Hong Kong’s Hang Seng index rose 0.31 percent, with shares of Chinese tech giant Tencent adding 0.58 percent.
The broad MSCI Asia ex-Japan index was 0.3 percent higher at 542.91, as of 12:40 p.m. HK/SIN.
In Japan, the Nikkei 225 was slightly higher as shares of index heavyweight Fanuc gained about 2 percent. The Topix index, however, fell 0.27 percent.
South Korea’s Kospi gained 0.29 percent as shares of industry heavyweight Samsung Electronics recovered from an earlier slip to gain more than 0.3 percent.
Over in Australia, however, the ASX 200 declined 0.14 percent as the sectors traded mixed.
Crown Resorts shares Down Under surged more than 19 percent on news that the Australian casino operator is in talks with Las Vegas-based Wynn Resorts for a potential $7.1 billion buyout.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.993 after declining from levels above 97.2 yesterday.
The Japanese yen traded at 111.35 against the dollar after touching an earlier low of 111.57, while the Australian dollar was at $0.7138 after bouncing from lows below $0.711 yesterday.
Oil prices jump amid Libyan conflict
Oil prices scaled new 2019 highs on Monday, with the international benchmark Brent crude futures contract adding 1.1 percent to settle at $71.10 per barrel. U.S. crude futures also rose 2.1 percent to settle at $64.40 per barrel.
In the afternoon of Asian trading hours on Tuesday, crude prices continued to advance as Brent rose 0.11 percent to $71.18 per barrel and U.S. crude futures gained 0.22 percent to $64.54 per barrel.
Oil stocks in Australia gained amid the rise in crude prices, as Santos jumped 3.01 percent and Beach Energy surged 3.96 percent.
The moves in oil prices came amid a recent resurgence in conflict in Libya, a key oil producer in the Organization of the Petroleum Exporting Countries.
“The main feature of what has to be said are pretty soporific global financial markets at the start of the week and ahead of some key event risk(s) on Wednesday has been a further jump in oil prices,” Ray Attrill, head of foreign exchange strategy at National Australia Bank, wrote in a morning note.
“Fear of fresh supply outages from Libya are said to be responsible as ‘warlord’ Khalifa Haftar moves his self-styled Libyan National Army forces towards the capital Tripoli, base of the UN recognised government of PM Fayez al-Sarraj,” Attrill said, citing recent reports of air strikes on the Tripoli airport.
Source: CNBC
