En­ergy firms lead Asian mar­kets higher

The Myanmar Times - - Business -

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. –

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