Drop in oil price pushes Asian markets higher; miners pull Australian stocks down
City Index March 9, 2011 10:11 PM
<p>The slight fall in oil prices eased investors’ concerned and was enough to push many of the Asian markets higher today. The Hang Seng and […]</p>
The slight fall in oil prices eased investors’ concerned and was enough to push many of the Asian markets higher today.
The Hang Seng and Nikkei were both up around 0.65%.
In Hong Kong, the big gainer was Cathay Pacific Airways Ltd, which gained 2.9% on the prospect of lower fuel costs. Air China also advanced 0.8% while Cosco International Holdings, which provides shipping-related services rose 5%.
In Japan, Mitsubishi UFJ Financial Group, the country’s largest publicly traded bank, gained 1.4%. Toyota Motor Corp rose 1.1% after a report the world’s No. 1 carmaker plans to almost double its operating profit within three years.
In Australia, the mining sector that led the market lower, but we saw weakness across the board.
The prevailing sentiment is still negative. The longer the Libyan crisis hangs around the more there will be concern amongst investors. At this stage, there are already speculations that if this (Libyan tension) persists further, it may impact the recovery in some economies.
Investors are now going for safe haven assets. That’s why some of the financials, consumer goods and telco stocks are trading higher today.
The positive lead that we got from the US overnight came solely on the back of finance stocks (there). But if you look at Europe and UK (overnight), they were fairly flat. The strong finish for finance stocks in the US trickled down to banking and finance stocks here, but that was not enough to push the market higher.
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.