Asia: Shares slightly higher as the rouble and crude prices stabilise

Asian stocks were mostly higher on Monday, following greater stability in crude oil prices and the Russian rouble, along with the Federal Reserve’s indication it will take a slow approach to raising interest rates.

The benchmark Hang Seng Index ended up 291.94 points, or 1.3%, at 23,408.57, while the Shanghai Composite closed 18.85 points higher at 3,127.44.

China offered Russia support in the form of an expanded currency swap, making increased use of yuan for bilateral trade. The Global Times said on Monday that “Russia is an irreplaceable strategic partner on the international stage.” The Beijing-based daily affiliated with the Communist Party went on: “China must take a proactive attitude in helping Russia walk out of the current crisis.”

Maintaining co-operation with Russia holds strategic economic value according to President Xi Jinping, who hopes to elevate his nation’s status as the world’s second largest economy with “big-country diplomacy”.

In another boost to the market, oil prices recovered after Saudi oil minister Ali Al-Naimi said at a conference in Abu Dhabi at the weekend that the sector will recover and fossil fuel will remain the main source of energy for decades to come.

Mohammed Al Sada, Qatar’s energy minister, urged producers outside of The Organization of Petroleum Exporting Countries (OPEC) to cut their output. OPEC held back last month on slashing its production target of 30m barrels a day.

In South Korea, the market hit a two-week high despite news that the government had cut its growth forecasts for 2014 and 2015. Officials said the economy would grow by 3.4% this year, down from 3.7% projected in July, while growth next year is predicted to be 3.8%, down from an earlier estimate of 4%

Shares of oil refiner Showa Shell Sekiyu jumped more than 27% after local media reported that it was in talks to be acquired by larger rival Idemitsu Kosan. The deal could create Japan's second-largest firm in the domestic gasoline market.

Taiwan shares were 0.9% higher on a rosy outlook for tech companies in the coming quarter as many big names are expected to roll out new products. Smartphone maker HTC Corp. gained 2.3% while Acer Inc. was up 1.9%.