Asian Stock Markets
Asian shares stepped back from recent decade highs on Monday while
major currencies held in tight ranges and oil jumped to a more than
two-year peak as Saudi Arabia’s crown prince cemented his power through
an anti-corruption crackdown.
Oil prices hit their highest since July 2015 as Mohammed bin Salman’s purge led to arrests of royals, ministers and investors including prominent business billionaire Alwaleed bin Talal.
The news stirred concerns of Middle East money pulling out of some Asian markets. In addition, a weekend call by China’s central bank governor for tougher financial regulation hit investor sentiment.
The negativity spread with futures hinting of a soft opening for European and U.S. bourses. FTSE futures FFIc1 slipped 0.2 percent while S&P E-mini futures ESc1 edged 0.1 percent lower. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2 percent to drift away from Friday’s top of 557.9, the highest since November 2007.
South Korea's KOSPI .KS11, which hit a record high last week, skidded 0.6 percent early on before paring losses to 0.3 percent. Hong Kong's Hang Seng Index .HSI fell 0.2 percent. The Hong Kong China Enterprises Index .HSCE lost 0.9 percent.
Japan's Nikkei .N225 eked out a small gain to hover around a 21-year peak. The dollar climbed against the yen to an eight-month peak after a string of U.S. data bolstered views the Federal Reserve will hike interest rates next month and tighten further in 2018.
U.S. non-manufacturing purchasing managers’ index rose to its highest since 2005, figures out on Friday showed. New orders for U.S.-made goods gained for the second straight month in September and orders for core capital goods surpassed expectations.
The dollar index .DXY held near four-month highs against a basket of currencies, while the euro EUR= trod water to loiter around its lowest since July.
In energy markets, Brent futures LCOc1 were up 32 cents at $62.39 a barrel, the highest since July 2015. U.S. crude CLc1 added 20 cents to 55.84. Spot gold XAU= was steady at $1,269.81 an ounce.
Bin Salman’s reforms include a plan to list parts of giant state-owned oil company Saudi Aramco next year, and a higher oil price is seen as beneficial for the market capitalisation of the future listed company.
Oil prices hit their highest since July 2015 as Mohammed bin Salman’s purge led to arrests of royals, ministers and investors including prominent business billionaire Alwaleed bin Talal.
The news stirred concerns of Middle East money pulling out of some Asian markets. In addition, a weekend call by China’s central bank governor for tougher financial regulation hit investor sentiment.
The negativity spread with futures hinting of a soft opening for European and U.S. bourses. FTSE futures FFIc1 slipped 0.2 percent while S&P E-mini futures ESc1 edged 0.1 percent lower. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2 percent to drift away from Friday’s top of 557.9, the highest since November 2007.
South Korea's KOSPI .KS11, which hit a record high last week, skidded 0.6 percent early on before paring losses to 0.3 percent. Hong Kong's Hang Seng Index .HSI fell 0.2 percent. The Hong Kong China Enterprises Index .HSCE lost 0.9 percent.
Japan's Nikkei .N225 eked out a small gain to hover around a 21-year peak. The dollar climbed against the yen to an eight-month peak after a string of U.S. data bolstered views the Federal Reserve will hike interest rates next month and tighten further in 2018.
U.S. non-manufacturing purchasing managers’ index rose to its highest since 2005, figures out on Friday showed. New orders for U.S.-made goods gained for the second straight month in September and orders for core capital goods surpassed expectations.
The dollar index .DXY held near four-month highs against a basket of currencies, while the euro EUR= trod water to loiter around its lowest since July.
In energy markets, Brent futures LCOc1 were up 32 cents at $62.39 a barrel, the highest since July 2015. U.S. crude CLc1 added 20 cents to 55.84. Spot gold XAU= was steady at $1,269.81 an ounce.
Bin Salman’s reforms include a plan to list parts of giant state-owned oil company Saudi Aramco next year, and a higher oil price is seen as beneficial for the market capitalisation of the future listed company.
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