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Asian Shares Upsurge on Timid Bounce in Crude Oil

On Tuesday, the Asian share markets rose, taking their signal from the gains on Wall Street after a strike in Kuwait aided recovery in prices of the crude oil.

MSCI’s broadest index of the Asia-Pacific shares outside Japan was up 0.5%

Japan’s Nikkei stock index was up 3.4% in the early trading, that is a day after it plunged by same percentage as the investors measured the influence of the earthquakes in south western Japan’s Kyushu on the producers’ supply chains.

Brazil’s Bovespa index demolished 0.6% overnight as Brazil’s President Dilma Rousseff pledged to fight her impeachment that could force her from her office after 13 years of leftist Workers’ Party rule.

The Fraught crude oil futures discovered a bottom after dropping as the talks broke down in Doha where the producers hoped to limit a supply glut.

Strike in Kuwait momentarily reduced country’s oil output by over half, and facilitated to pull the crude prices off their lows.

The Brent crude was up about 0.1% at 42.97 dollar a barrel, whereas the U.S. crude added 0.5% to 39.96 dollars.

“Oil started the day sharply lower after the key producers failed to reach an agreement to freeze production but losses were short-lived as the reports of a strike in Kuwait sparked a U-turn that briefly took prices into positive territory,” said Kathy Lien, who is the managing director at BK Asset Management, New York

That aided the commodity-linked currencies come thriving back to life after sheer losses succeeding the Doha deal failure.

Australian dollar was last up 0.4% at 0.7775 dollars after earlier rising as high as 0.7778 dollars. On Monday, it had skidded as low as 0.7594 dollars.

The supposed safe-haven yen collapsed in line with recovery in risk appetite. The dollar added 0.3% to 109.12 yen, whereas the euro added 0.3% to 123.35 yen, moving away from previous session’s 3-year low.

Against the dollar, the euro edged down about 0.1% to 1.1306 dollars. While there is no change expected, the investors are awaiting Mario Draghi’s news conference for the cues on central bank’s thinking.