Asian mar­kets down, yen re­cov­ers

The Myanmar Times - - International Business -

TOKYO stocks led a re­treat in Asian mar­kets yes­ter­day as the yen re­cov­ered, while re­gional en­ergy firms strug­gled with crude prices on con­cern about the chances of suc­cess at an up­com­ing pro­duc­ers’ meet­ing.

The OPEC oil car­tel and Rus­sia met in Al­ge­ria yes­ter­day to dis­cuss a global oil glut and over­pro­duc­tion that has stran­gled prices for more than two years.

How­ever, hopes for a deal to limit out­put were hit by Iran, which said it would not ac­cept a col­lec­tive freeze – mean­ing that oth­ers, par­tic­u­larly re­gional ri­val Saudi Ara­bia, are also un­likely to agree as well.

The news sent both main con­tracts plung­ing al­most 3 per­cent. They only man­aged meek re­cov­er­ies yes­ter­day, with West Texas In­ter­me­di­ate up seven cents at US$44.74 and Brent 13 cents higher at $46.10.

“OPEC mem­bers are ped­dling their self-in­ter­ests, and while that’s the case, there can’t be a co­op­er­a­tive ef­fort,” said Michael McCarthy, chief mar­ket strate­gist at CMC Mar­kets.

En­ergy firms from Syd­ney to Hong Kong were in the red, in line with losses on stock mar­kets.

In Tokyo the Nikkei in­dex closed down 1.3pc, with a stronger yen damp­en­ing buy­ing ap­petite.

The dol­lar bought 100.55 yen in Asian trade, slightly up from 100.36 yen in New York.

Shang­hai lost 0.3pc by the close, Seoul shed 0.5pc and Sin­ga­pore dipped 0.1 pc, while there were also losses in Bangkok and Jakarta. But Hong Kong staged a late burst to end 0.2pc up.

The broad losses fol­lowed gains in Asia and New York the day af­ter Hil­lary Clin­ton was judged to have won the first pres­i­den­tial de­bate over Repub­li­can Don­ald Trump.

In Hong Kong the Postal Sav­ings Bank of China was flat as it be­gan trad­ing af­ter the world’s big­gest ini­tial pub­lic of­fer­ing for two years.

PSBC raised $7.4 bil­lion in the IPO, the big­gest since Alibaba’s $25 bil­lion New York list­ing in 2014.

But an­a­lysts at­trib­uted the luke­warm in­ter­est to the re­cent flat per­for­mance of large Chi­nese fi­nan­cial firms on Hong Kong’s bourse ow­ing to the glut of op­tions.

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