Article / 26 June 2017 at 7:00 GMT

Morning Markets: Asian equities gain with oil boost

Consulting editor / TradingFloor
Norway







MM TABLE

 


Watchlist

  • Germany: Ifo Business climate survey (0800 GMT)
  • US: Durable goods orders (1230 GMT)
  • US: Chicago Fed national activity index (1230 GMT)

Asian share prices rose in holiday-thinned trading on Monday after a rebound for US stocks at the end of last week, with firmer crude oil prices lending support.

The Shanghai Composite jumped 0.8%, while the Nikkei edged up just 0.1%. Financial markets in Singapore, Malaysia, Indonesia and the Philippines were closed on Monday for the Islamic holiday of Eid al Fitr, the end of Ramadan.

The Dow industrials ended flat on Friday, but the S&P500 and Nasdaq rose.

Crude oil prices extended their rally into the Asian trading session on Monday, with momentum from Friday, helped by a softer US dollar. Brent climbed above $46/barrel level.

Germany's Ifo business sentiment index is due at 0800 GMT.

Market signals

Asian session

  • Oil prices trended higher to settle above the last session's 10-month lows
  • Markets in Indonesia, Singapore, Malaysia, India and the Philippines are closed
  • China's PMIs are set to show signs of a slowdown in the world's second-largest economy
  • Australia's household debt-to-income ratio has hit a record high of 189%: RBA
  • The troubled Japanese air-bag maker Takata has filed for bankruptcy
  • Glencore has raised its bid for Rio Tinto's NSW coal assets
  • Equities throughout Asia rose as crude futures held above $43/barrel.
  • WTI oil climbed 1.2% to $43.52/barrel in early afternoon trading in Tokyo.
  • The Kospi and Shanghai markets were Asia's two best performing bourses
  • At 0522 GMT South Korean shares were up 0.45% and Shanghai, 0.71%
  • Hong Kong's Hang Seng was up 0.4%, and the Nikkei treading water, rising 0.12%

Forex ahead

  • There are signs that the AUD is moving into a recovery phase
  • JPY was little changed at 111.32 per dollar after four days of increases
  • GBPUSD increased 0.2% to 1.2740, gaining nearly 1% over past four days
  • EURUSD was flat at 1.1189

From the Floor

Oil-driven. “Asian stocks are higher mostly on a rebound in oil, but also technology stocks,” says Garnry.

Yield hindrance. “The US yield curve continuing to flatten is holding back USDJPY,” says Hardy.

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion

1..2..3
Germany’s economy is in focus today with the release of the Ifo business sentiment survey data for June, writes James Picerno.

Strong start
The S&P/ASX200 had a strong open at the start of trading with all sectors in the green before slipping into the red in early afternoon trade, says Saxo Capital Markets (Australia).

2017 so far
Summer is coming and the markets have switched of slightly, but there are fears that credit growth might stall or even reverse, says Kay van-Petersen.


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Sunset in Jakarta ... It was a quiet trading day in Indonesia and other Asian nations today, with markets closed for the Eid al-Fitr holiday, marking the end of Ramadan. Photo: Shutterstock

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