asian stocks hit by energy firms as oil dives shanghai muted
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Asian stocks hit by energy firms as oil dives, Shanghai muted

Arab Today, arab today

Arab Today, arab today Asian stocks hit by energy firms as oil dives, Shanghai muted

Asian energy firms followed their US counterparts downwards
Hong Kong - AFP

Another sell-off in energy firms dragged Asian markets lower on Wednesday, tracking hefty losses on Wall Street as oil prices tanked, while Shanghai was muted despite MSCI's decision to include mainland-listed firms in a key index.

Crude sank more than two percent on Tuesday as traders grow increasingly worried about a global supply glut as continued production in the US and elsewhere offsets an OPEC output cut deal.

The fall also came despite a drop in US inventories.

"Oil prices have officially entered a bear market (and) plummeted two percent after reports of rising output for from Nigeria and Libya -- both OPEC members exempt from the production cut deal," said Stephen Innes, senior trader at OANDA.

The crude sell-off, which means the commodity has lost a fifth of its value from recent highs, saw energy firms drag Wall Street down with all three main indexes ending deep in the red.

And while both main contracts stabilised on Wednesday, Asian energy firms followed their US counterparts.

Rio Tinto sank 2.5 percent and BHP dived more than three percent in Sydney, while Hong Kong-listed CNOOC was more than one percent off and Inpex fell 1.8 percent in Tokyo.

Broader markets were also well down. Tokyo's Nikkei fell 0.2 percent by the break, while Sydney sank 1.2 percent and Seoul gave up 0.5 percent. Singapore tumbled 0.9 percent, Wellington eased 0.5 percent and Manila 0.1 percent.

- Sterling loss -

Shanghai bucked the trend to edge up 0.3 percent but the gains were minimal despite MSCI finally approving mainland-listed stocks, or A-shares, for its emerging markets index.

The agreement, after three previous rejections, means for the first time foreigners will be able to buy into Chinese markets directly, providing a possible $8 billion of inflows in the near term.

It is also seen as another step for the country's leaders in further opening up to the world economy and asserting Beijing's growing importance to global finance.

However, analysts pointed out that while the decision is important, Chinese stocks will only account for 0.7 percent of the index when they are included next June.

Northeast Securities analyst Shen Zhengyang said: “The thing itself is a good thing. But it has limited benefit for the market. The money that will come in is just a drop in the bucket, while the market’s liquidity itself isn’t sufficient at the moment due to the deleveraging process in the financial system.”

The yuan edged up on the MSCI move but the pound continued to struggle against the dollar having taken a hit Tuesday after Bank of England governor Mark Carney dismissed an interest rate hike any time soon.

Carney's comments disappointed investors after a recent run of rising inflation suggested the BoE could lift borrowing costs again. Adding to the pound weakness was ongoing speculation about how tough Brexit terms will be after negotiations on Britain's departure from the EU got under way.

 - Key figures around 0230 GMT - 

Tokyo - Nikkei 225: DOWN 0.2 percent at 20,183.90 (break)

Hong Kong - Hang Seng: DOWN 0.2 percent at 25,805.00

Shanghai - Composite: UP 0.3 percent at 3,150.05

Euro/dollar: UP at $1.1135 from $1.1132 at 2100 GMT

Pound/dollar: DOWN at $1.2623 from $1.2624

Dollar/yen: DOWN at 111.41 yen from 111.46 yen

Oil - West Texas Intermediate: DOWN two cents at $43.49 per barrel 

Oil - Brent North Sea: DOWN nine cents at $45.93

New York - Dow: DOWN 0.3 percent at 21,467.14 (close)

London - FTSE 100: DOWN 0.7 percent at 7,472.71 (close)

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

asian stocks hit by energy firms as oil dives shanghai muted asian stocks hit by energy firms as oil dives shanghai muted

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

asian stocks hit by energy firms as oil dives shanghai muted asian stocks hit by energy firms as oil dives shanghai muted

 



GMT 05:50 2017 Tuesday ,15 August

20 killed in Takhar funeral attack

GMT 04:51 2017 Thursday ,13 April

Huda Kattan among top 10 beauty influencers

GMT 09:44 2018 Saturday ,06 January

Aoun to deliver speech in Rome this afternoon

GMT 09:14 2017 Saturday ,30 December

London stocks end year on record high

GMT 11:47 2017 Monday ,11 December

France's rightwing shifts after Macron victory

GMT 04:49 2013 Monday ,27 May

Feng Shui living room concepts

GMT 19:45 2017 Wednesday ,18 January

The UAE Releases Global State of the Future Report

GMT 23:40 2017 Wednesday ,18 October

OIC condemns terrorist attack in Jeddah

GMT 16:41 2017 Saturday ,18 February

FBMA International Show Jumping Cup 2017 competition

GMT 17:43 2017 Tuesday ,14 February

Spanish activists taken to court over BDS activism

GMT 21:37 2017 Sunday ,02 July

Religious tourism lottery to be held on Monday

GMT 15:27 2017 Saturday ,24 June

US imposes ban on fresh Brazil beef imports

GMT 06:07 2017 Tuesday ,24 October

Air Force set to create new ISR unit with Global Hawk

GMT 03:49 2017 Thursday ,22 June

Dalai Lama says will visit Trump

GMT 03:52 2017 Sunday ,15 January

Drydocks World and GDRFA sign MoU partnership
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday