Shares in Asia rise on lower oil prices, and potential Shi-Biden meets via Reuters

ছবি Photo from Reuters file: A man wearing a protective mask amid an outbreak of coronavirus disease (Covid-1) looks at an electronic board and sees Japan’s Nikkei index outside a broker in Tokyo, Japan, September 2, 2021. Router / Kim Kyung-hun

Written by Alun John

HONG KONG (Reuters) – Asian stocks rallied on Thursday on possible easing of US-China tensions and weakening energy prices, as oil fell from a multi-year high.

US and European futures rose 0.52% and the pan-region rose 1.23% a day after the euro index fell 1.03%.

MSCI’s broader Asia-Pacific stock index outside Japan rose 1.45%, if it holds, it will be the benchmark best daily performance since August.

Hong Kong has led Asia in profit. The index rose 2.41%, jumping from its lowest close in 12 months, and moving to its best day since August, although analysts were cautious.

“It’s too early to say it’s part of a turnaround. Today it looks like some bottom fishing and brief cover-ups are underway, and a possible meeting between President Xi Jinping and President Joe Biden is helping the mood,” said Steven Leung executive. Hong Kong’s UOBK is the director of institutional sales for Hian.

A senior U.S. administration official said Wednesday that the United States and China have agreed in principle to hold a virtual meeting for their presidents before the end of the year.

Elsewhere, the South Korean Kospi rose 1.6%, the Australian stock rose 0.51% and strengthened 0.72%, offsetting an eight-day loss.

However, there was still reason to be cautious in the region, especially on Chinese holidays, as it seems that the concerned developer has contributed to the delay in progressing towards any solution to China Evergrand.

Carlos Casanova, a senior Asia economist at UBP, said there were ongoing concerns about China’s power crisis and its property market, and that the government did not appear to be taking immediate action despite threats to the Evergrand debt problem to a larger industry. .

“There is a transition in the broader real estate sector, the authorities are not doing much to intervene, and so investors are trying to assess what this new pain threshold means,” he said.

But he added that the improving mood in US-China relations, especially that of trade chief Catherine, has therefore increased the sense of risk, a more constructive tone in this week’s speech.

Also supporting equities, oil prices moved away from long-term highs the day before. A rally in oil prices this week was a big contribution to equity sales.

0.93% down .7 76.71 a barrel. US crude stocks fell overnight after reaching a seven-year high of .7 79.78 on Wednesday on unexpected gains.

It fell 0.5% to 80 80.69 a barrel, hitting its three-year high of .4 83.47 on Wednesday. [O/R]

In volatile trade, both European and US prices exceeded 10% overnight. European prices hit an all-time high on Wednesday morning amid a prolonged supply crisis.

The recent rise in global gas prices – which helped boost Asian LNG prices by 500% compared to a year ago – has put the entire energy sector at risk of instability, with power producers in Europe and Asia still hoping to replenish hard stocks before winter.

The apparent interim agreement to avoid falling energy prices and federal defaulters has contributed to the late rally on Wall Street.

Global markets will take a look at pay-roll data on Friday, with investors hoping that reasonable figures mean the US Federal Reserve will begin to reduce its broad stimulus program at its November meeting.

The dollar was stable, not too far from a 12-month high against the currency basket last month, and the euro was at a 14-month high.

The benchmark yield was 1.5398%, Wednesday’s three-and-a-half month high of 1.573%.

0.2% lower to $ 1,759.89 per ounce.

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