Weakness on Wall Street set the tone for overnight weakness in Asia as the Nikkei 225 drifted lower in the face of the Bank of Japan's first fixed-rate debt purchasing move that crimped financial stocks with the Nikkei off 0.1% at 17, 848.79.
But it wasn't Wall Street action alone that affected Asian equities. Oil prices dropped, the Wall Street Journal reported, after data showed U.S. crude oil inventories in the
country were higher than expected. Brent crude, the international
benchmark, was last trading down 0.2% at $46.53 a barrel.
The data overshadowed comments from Russian Energy Minister Alexander Novak who told reporters at a Moscow energy forum that Russia would “support any decision” adopted by the Organization of the Petroleum Exporting Countries. Crude prices had surged nearly 6% Tuesday on news that OPEC would try to limit production ahead of a meeting in Vienna. During Asian trade, U.S. crude futures fell 0.35 percent to $45.41 a barrel, while Brent futures shed 0.34 percent to $46.47 a barrel.
The data overshadowed comments from Russian Energy Minister Alexander Novak who told reporters at a Moscow energy forum that Russia would “support any decision” adopted by the Organization of the Petroleum Exporting Countries. Crude prices had surged nearly 6% Tuesday on news that OPEC would try to limit production ahead of a meeting in Vienna. During Asian trade, U.S. crude futures fell 0.35 percent to $45.41 a barrel, while Brent futures shed 0.34 percent to $46.47 a barrel.
This came ahead of inflation, jobs and exports data expected from the U.S. and testimony from Federal Reserve Chairwoman Janet Yellen on the economic outlook to Congress later Thursday. In other markets,the ASX 200 traded flat as a stronger dollar hurt commodities when it hit a 13-year high Wednesday in what investors believe will be a higher inflation and stronger fiscal stimulus scene with Trump policies coming on board.
The Kospi was off 0.06%, the Shanghai -0.30% and the Hang Send -0.23%.
In the currencies, the greenback traded at 100.32 against a basket of currencies. In the U.S. on Wednesday, the dollar touched 100.57, its highest since April 2003. The yen strengthened against the dollar tracking 108.95, compared to 109 levels seen on Wednesday. The Australian dollar was trading at $0.7474 against the greenback, compared to levels above $0.75 seen earlier this week.
Gold held steady Thursday after the dollar soften from its recent high with spot gold at $1,227.50 an ounce, down slightly from its previous session.
The Kospi was off 0.06%, the Shanghai -0.30% and the Hang Send -0.23%.
In the currencies, the greenback traded at 100.32 against a basket of currencies. In the U.S. on Wednesday, the dollar touched 100.57, its highest since April 2003. The yen strengthened against the dollar tracking 108.95, compared to 109 levels seen on Wednesday. The Australian dollar was trading at $0.7474 against the greenback, compared to levels above $0.75 seen earlier this week.
Gold held steady Thursday after the dollar soften from its recent high with spot gold at $1,227.50 an ounce, down slightly from its previous session.
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