Asian equity markets were mixed today (November 28th) as oil prices extended their slide.
Brent crude has tumbled three per cent to below $75/barrel (£48) yesterday, the lowest level since September 2010, as the Organization of Petroleum Exporting Countries (Opec) agreed to leave output unchanged.
This comes amid a global surplus due to ongoing US production and Opec supplies ahead of targets, along with a slowdown in demand in China and Europe.
"While a weaker oil price is in theory positive for the global economy as it encourages a wealth transfer from producers to consumers, it seems in the short term it presents significant challenges for some key central banks. The reality is major central banks have been trying to push inflation higher and oil prices will make this difficult to achieve," Stan Shamu, market strategist at IG, told CNBC.
Hong Kong's benchmark Hang Seng index closed down 16.83 points at 23,987.45. In China, the Shanghai Composite ended up two per cent up at 2,682.83, rising nearly 11 per cent in November.
In Australia, the benchmark S&P/ASX 200 index closed down 1.6 per cent at 5,313, while in South Korea, the Kospi index closed down 0.1 per cent at 1,980.78.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.