Monday, August 22, 2016

Stock in Asia Mixed as Oil Prices Fall and Dollar Loses Ground

Business, Finance, stocks, world economy

Asian Shares gave mixed results on Tuesday, as oil prices fell and the U.S. dollar weakened ahead of a key meeting of Federal Reserve officials and other central bankers later this week.

The Nikkei Stock Average lost 0.4%, while Australia’s S&P/ASX 200 were up by 0.8%. Hong Kong’s Hang Seng Index was down by 0.3%, while the Shanghai Composite Index gained 0.2%. The FTSE Bursa Malaysia KLCI was down 0.1%.

Crude-oil prices sank below $47 a barrel in New York overnight on skepticism the Organization of the Petroleum Exporting Countries (OPEC) would reach a deal to cut production, sending commodity stocks in Japan sharply lower. Oil explorer Inpex was down 1.9%, while Japan Petroleum Exploration slid 3.4%. Brent crude, the global benchmark, was recently down 1% from the previous close to $48.67 a barrel, a five-day low.

Copper three-month futures on the London Metal Exchange hovered near six-week lows, and share prices of mining companies on Australia’s benchmark index rose.

U.S. dollar slipped against other major currencies as the yield on the 10-year U.S. Treasury note fell to 1.55% from around 1.60%. The U.S. dollar index was recently down 0.1%. The yen rose 0.1% against the dollar, adding to pressure on Japanese exporters by making them less competitive, with auto makers Honda Motor falling 2.1% and Mazda Motor shedding 3% of its value.


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