Asian stocks plunge to near one-year lows as oil rallies on inflation concerns

Texas News Today

FILE PHOTO: A man wearing a protective mask during the COVID-19 outbreak is shown on an electronic board displaying stock prices outside a securities company on September 21, 2021 in Tokyo, Japan. Reuters/Kim Jeong Hoon

5 October 2021

by Anshuman Daga

SINGAPORE (Reuters) – Investors are worried that oil prices will rise for the first time in years, with supply chain turmoil adding to inflationary pressure, so for three consecutive sessions on Tuesday, Asia saw a significant drop in stocks on Wall Street. tracked.

US and European equity futures rose 0.01%, S&P 500 e-minis 0.01%, pan-regional Eurostocks 50 futures 0.2 and FTSE futures 0.4%.

MSCI’s broadest non-Japanese Asia-Pacific stock index fell 1.3%, its third consecutive decline. Japan’s stock price fell 2.5%, South Korea fell 2% and Australia fell 0.4%. Vasu Menon, executive director of investment strategy at OCBC Bank, said: “Due to the market slump, MSCI’s main benchmark stood at 619.77, the lowest since November 2020, but the losses narrowed 0.6% in late Asian trade. This year’s index is down more than 5%, causing major losses in Hong Kong and Japanese markets.

“We’ve seen tech stocks outperform value stocks, so if inflation continues to be a concern, tech stocks have an impact,” Menon said.

Oil prices hit a three-year peak on Monday after OPEC+ reaffirmed adherence to current production policies 2021-10-04 Improvement in demand for petroleum products has put pressure on some countries to significantly increase production . [O/R]

Emphasizing on rising commodity prices, Monday’s Refinitiv/Core Commodity CRB Index touched a record high of 233.08 in more than six years. US oil was steady at $77.68 a barrel a day after hitting its highest level since 2014. Brent crude was at $81.5. After climbing to the top for the first time in 3 years.

“OPEC+ could inadvertently drive up oil prices further and create an energy crisis that primarily reflects very tight gas and coal markets,” said Vivek Dahl, commodities analyst at the Commonwealth Bank of Australia. is sex. “

“This could pose a threat to the recovery of the global economy, such as growth in global oil demand recovering as the economy restarts against a backdrop of rising vaccination rates,” Dahl said in a memo.

Asian market focus is invested by shocked real estate developer China Evergrande It was on Whether to provide comfort at home. About signs of property disposal.

Shares of the world’s largest debt developer were suspended for trading on Monday, but more Chinese real estate developers have been downgraded due to concerns over loan repayment capacity.

The Dow Jones Industrial Average fell 0.94% to 34,002.92, the S&P 500 fell 1.30% to 4,300.46, the Nasdaq Composite fell 2.14% to 14,255.49, and investors were big as Treasury yields rose. Tech stocks fall.

As the United States faces the risk of a historic default in two weeks, investors’ attention to the need to raise the government’s debt limit has increased US Treasury yields. The US dollar was trading at near one-year highs compared to key peers ahead of key US wage data set for the weekend. Employment figures can provide clues as to when the Fed’s stimulus package will ease and interest rates will begin to rise. The dollar index, which tracks the greenback and basket of six currencies, rose 0.20% to 94.02. The euro fell 0.25% to $1.1592 and the yen rose 0.29% to $111.18. After hitting its highest level since September 23 on Monday, gold fell to $1,757 an ounce. [GOL/]

(Reporting by Anshuman Daga, edited by Himani Sarkar and Simon Cameron-Moore)

Asian stocks plunge to near one-year lows as oil rallies on inflation concerns

Source Link Asian shares fall to near one-year low as oil rally fuels inflation concerns


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