Asian stocks were mostly up Monday, with greater stability in
crude oil prices and the Russian ruble, and the Federal Reserve's
soft indication for a rate increase next year helping improve
risk-taking sentiment.
Australia's S&P/ASX 200 was up 1.2% to 5402.10 as concerns
eased over unstable global market conditions. Japan's Nikkei also
opened up, but was fractionally down at 17605.34 amid thin trading,
a possible indication that it may be difficult to continue upward
momentum after three consecutive gaining sessions in Tokyo last
week.
While the Federal Reserve last week broached the prospect of
"beginning to normalize the stance of monetary policy," Chairwoman
Janet Yellen said the Fed was unlikely to begin tightening for at
least the next couple of meetings. That helped lift stocks in the
U.S. and elsewhere, pushing up the S&P 500 just shy of a fresh
closing record Friday.
"We won't see a rate increase at least until April. The rate
rise isn't imminent. We've got some time," said Mitsushige Akino,
chief fund manager at Ichiyoshi Investment Management.
U.S. and global oil benchmarks jumped to their largest
percentage gains in more than two years Friday. The Russian ruble
recovered some ground to 58.80 per dollar.
"An excessive risk-averse attitude is easing," said Hideyuki
Ishiguro, senior strategist for investment strategy at Okasan
Securities.
Russia's ample foreign reserve enables it to support the
currency if necessary and falls in oil prices may be good news for
many developed economies that import fuel, Mr. Ishiguro said.
He said Ms. Yellen's comments helped restore some stability in
the markets.
Among individual stock movers in Japan, Idemitsu Kosan Co. was
up 3.4% at Yen2,094 following news of a potential buyout of Showa
Shell Sekiyu, which was rose 25% to Yen1,279. Japan's
second-biggest oil refiner and distributor said Saturday it is in
talks to buy industry peer Showa Shell as falling domestic oil
demand pinches the margins of wholesalers.
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