Translate

Search This Blog

Search Tool




Asian Markets at Close Report

European Markets at Close Report

Nov 17, 2016

Asian Markets Closing Report on November17, 2016: Asian Markets Slip as OilPrices Fall


www.marketwatch.com
marketwatch.com
 
Kenan Machado 
 
A drop in oil prices weighed on Asia stocks on Thursday, ahead of inflation, jobs and exports data expected from the U.S. and Federal Reserve Chairwoman Janet Yellen’s testimony on the economic outlook to Congress later in the day.


Australia’s S&P/ASX 200 XJO, +0.20%   recovered to gain 0.2%, with with BHP Billiton BHP, +0.33%   up 0.8% and Rio Tinto RIO, +1.14%   recovering to trade higher by 0.8%. However Oil Search OSH, +0.00%   fell 0.9% with Woodside Petroleum WPL, -1.61%   lost 2.5%. This was as Australia’s unemployment rate came in unchanged at 5.6% in October, which was lower than expected.
“The strengthening U.S. dollar is buffeting commodity prices,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. Stock market declines in the U.S. and Europe also weighed on equities in Asia, he said.
The dollar touched a 13-year high on Wednesday, boosted by rising U.S. bond yields and expectations of a significant fiscal stimulus under the administration of President-elect Donald Trump. The ICE Dollar Index DXY, -0.25%  , which measures the U.S. currency against a basket of six others, rose to 100.57 earlier in the session, its highest level since April 2003. It was last trading up 0.11% at 100.41.
Crude prices declined following data from the U.S. Energy Information Administration on Wednesday that crude oil inventories in the country were higher than expected. Brent crude LCOJ7, +1.04%  , the international benchmark, was last trading down 0.2% at $46.53 a barrel.
The data overshadowed comments from Russian Energy Minister Alexander Novak who told reporters at a Moscow energy forum that Russia would “support any decision” adopted by the Organization of the Petroleum Exporting Countries. Crude prices had surged nearly 6% Tuesday on news that OPEC would try to limit production ahead of a meeting in Vienna.
In Japan, the Nikkei Stock Average NIK, +0.00%   was flat with Japan Petroleum Exploration 1662, +0.04%   down 0.2%, recovering from a decline of 1.2%. A 0.1% gain in the yen against the dollar hurt equities as a stronger currency weighs on corporate profits.
Bank of Japan Governor Haruhiko Kuroda said on Thursday that he would hold down yields in Japan ahead of a likely rate-increase cycle in the U.S.
“Interest rates may have risen in the U.S., but that doesn’t mean that we have to automatically allow Japanese interest rates to increase in tandem,” he said in parliament.
The remark came within an hour of an announcement by the BOJ that it would buy an unlimited amount of certain government bonds at fixed rates. Yields on two-year and five-year Japanese government bonds fell on Thursday after BOJ’s announcement. The 10-year yield also briefly fell to 0.010% after hitting as high as 0.025% earlier in the morning.
Korea’s Kospi index SEU, +0.05%   rose 0.1%, Hong Kong’s Hang Seng HSI, -0.08%   was flat and the Shanghai Composite SHCOMP, +0.11%   gained 0.1%.
Later in the U.S. on Thursday, data on October consumer prices, weekly jobless claims and export sales are due. But the market will be focused on congressional testimony from U.S. Federal Reserve Chairwoman Janet Yellen. New York Fed President William Dudley and Fed Board Governor Lael Brainard will also be speaking at public events.
Read: What to watch in Yellen’s testimony
“Assets are repricing for the likelihood of a Trump-as-Reagan scenario,” said Timothy Condon, head of research for Asia at ING Financial Markets, meaning he expects Trump to spend aggressively. The asset repricing had taken a breather Wednesday, he said.
The Philippines’ third-quarter gross domestic product came in at 7.1% on year, surprising economists. The benchmark stock index, the PSEi was higher by 0.8%.
Gold GCZ6, +0.45%  , considered a hedge against volatility, was up 0.2% in early Asian trade.
— Ese Erheriene contributed to this article.