Asia report: Markets mixed as oil prices continue to rebound
Markets in Asia finished mixed on Thursday, as oil prices continued to recover from their dire losses earlier in the week.
In Japan, the Nikkei 225 was up 1.52% at 19,429.44, as the yen strengthened 0.19% against the dollar to last trade at JPY 107.55.
Of the major components on the benchmark index, automation specialist Fanuc was up 4.7%, Uniqlo owner Fast Retailing added 0.52%, and technology conglomerate SoftBank Group was 1.64% firmer.
The broader Topix index added 1.36% by the end of trading, to settle at 1,425.98.
On the mainland, the Shanghai Composite slipped 0.19% to 2,838.50, and the smaller, technology-centric Shenzhen Composite was 0.5% weaker at 1,763.03.
South Korea’s Kospi was ahead 0.98% at 1,914.73, while the Hang Seng Index in Hong Kong was up 0.35% at 23,977.32.
The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics flat, and chipmaker SK Hynix down 1.55%.
Fresh economic news out of Korea showed the peninsula’s economy contracted at its quickest pace since 2008 for the first quarter, with gross domestic product falling 1.4% quarter-on-quarter.
The data would show at least some of the domestic effect of the Covid-19 coronavirus outbreak, as South Korea was one of the earliest hit places outside of mainland China.
Oil prices continued their rebound, after a volatile overnight session which saw Brent dip below $17 per barrel and West Texas almost touching $10.
Earlier in the week, markets were left dumbfounded as the price for the West Texas Intermediate May contract entered negative territory for the first time ever, meaning vendors were willing to pay others to take the oil off their hands.
It managed to get its head back above water before the May delivery contract expired on Tuesday.
“Trading was choppy yesterday as the energy contracts swung from being firmly in the red to showing massive gains, and finally settling off the highs of the session,” said CMC Markets analyst David Madden.
“The rally in the energy market was helped by President Trump, who warned Iran that if any of the gunboats ‘harass’ any US ships, they will be fired upon by the US navy.
“Some market participants felt the US president was intentionally stoking political tensions to elevate the oil market.”
The price of the thick black stuff continued to rise at the end of the Asian day, with Brent crude last up 7.45% at $22.01 and West Texas Intermediate adding 11.15% to $15.51.
In Australia, the S&P/ASX 200 gave up earlier gains to finish just below the waterline, losing 0.08% to 5,217.10.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.27% firmer by end-of-play, closing at 10,446.11, led higher by New Zealand Refining, which was up 8.4%, rebounding from losses earlier in the week.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.35% at AUD 1.5762, and the Kiwi advancing 0.4% to NZD 1.6731.