Energy firms lead Asian markets higher
ENERGY firms led a rally in most Asia equities markets yesterday after oil prices soared on hopes for a deal by producers to cut output, while the dollar settled back after its latest gains.
The advance on trading floors is the latest in a volatile week for global markets after Donald Trump’s shock election victory, which has fanned uncertainty for the US and the world economy.
News that the OPEC exporters club and non-member Russia were engaged in a push for a deal fuelled a rush back into crude, which has in recent weeks been hit by worries over the chances of a cut as well as a strong dollar.
Both main contracts rallied almost 6 percent on November 15 on renewed hopes OPEC can reach a deal before it holds its twice-yearly meeting at the end of the month.
“With OPEC production at record highs, meaning any cut has to get bigger by the day, any news that this mountain can be climbed by November 30 is seized upon,” Jeffrey Halley, senior market analyst at OANDA, said in a note.
“With fast money flows dominating so many other markets at the moment it is no surprise that it was oil’s turn,” he said, adding more volatility was likely.
Among the big winners, Hong Konglisted CNOOC soared 1.8pc, Woodside Petroleum jumped more than 2pc in Sydney and Inpex was 3pc higher in Tokyo.
Most major indexes tracked another record close on Wall Street.
Tokyo jumped 1.1pc as another rise in the dollar provided further support for exporters. The greenback surged to 109.40 yen.
Singapore put on 0.7pc while Seoul was up 0.6pc. However, Shanghai eased 0.1pc and Hong Kong succumbed to a late sell-off to end 0.2pc down. –