Markets in Asia Higher After Volatile Day on Wall Street
February 03 2016 - 11:00PM
Dow Jones News
Asia Pacific markets started the day on a stronger note
following cues from Wall Street after the U.S. dollar dropped
Wednesday, which raised the price of crude oil.
Weaker-than-expected U.S. service-sector data pushed the U.S.
dollar to its lowest level against a basket of currencies in three
months, sparking gains for commodities, which extended into Asian
trading hours.
"Risk-on is back with higher oil prices," analysts from ING
wrote in a research note.
Chinese markets began the day higher, with the Shanghai
Composite gaining 1.6% and the smaller Shenzhen market up 1.8%.
In Hong Kong, the Hang Seng Index climbed 1.7% while the Hang
Seng China Enterprises Index, which is made up of mainland Chinese
companies with listings in the city, advanced 2%. A gauge of Hong
Kong-listed energy companies rose 5.6%.
Japan's Nikkei 225 trimmed earlier losses of as much as 1.5% and
were recently down 0.5% in midmorning trading as the Japanese yen
lost some strength overnight. The yen last traded at ¥ 118.06
against the U.S. dollar. Traders are attempting to parse mixed
signals from the Bank of Japan with regard to the course of its
stimulus efforts after it unexpectedly introduced negative interest
rates on Friday.
"Confusion reigns, but either way the Nikkei will likely be sold
today on JPY strength, while all other equity markets will perform
nicely," wrote IG chief market strategist Chris Weston. "The
central focus, though, is oil and specifically whether we will or
won't get an emergency meeting between OPEC and non-OPEC
members."
Elsewhere in Asia, most other benchmarks moved higher; South
Korea's Kospi was up 1% and the Australian S&P/ASX 200 gained
1.6%.
Oil prices remained choppy in morning trade in Asia, with Brent
crude rising 0.9% to $35.35 a barrel. WTI crude prices rose 1.2% to
$32.65.
Gold strengthened and reached a three-month high. Bullion was
last trading flat at $1,141.70 per troy ounce.
Write to Gregor Stuart Hunter at gregor.hunter@wsj.com
(END) Dow Jones Newswires
February 03, 2016 22:45 ET (03:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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