Global Markets Rise as Oil Prices Advance
April 19 2018 - 12:46AM
Dow Jones News
By Joanne Chiu
Asia-Pacific stocks were broadly higher Thursday as oil prices
rose to a 3 1/2 -year high.
Markets in the Greater China region led the advance. Hong Kong's
China Enterprises Index, made up of Chinese-based firms with
listings in Hong Kong, climbed 2.1%, while the benchmark Hang Seng
Index rose 1.3%.
Oil-related stocks helped fuel gains. PetroChina jumped 5% and
peer Cnooc rose more than 3%.
Australian energy stocks rose a further 1%, putting the month's
advance at 8.6%, on pace for the biggest monthly gain since
2011.
Oil futures rose nearly 3% on Wednesday and were up a further
0.6% in Asian trading Thursday after data showed U.S. stockpiles
fell by more than analysts were expecting.
Michael McCarthy, chief market strategist at CMC Markets, said
recent data show industrial demand is stronger than what has been
expected and that "we might underestimate the strength of
turnaround of the global economy."
After muted gains in U.S. stocks on Wednesday, S&P 500
futures were recently up 0.1%.
Signs of easing geopolitical tensions have helped smooth markets
recently.
"The trade risk between the U.S. and China can be reduced
because ultimately China can use North Korea as a bargaining chip,"
said James Cheo, senior investment strategist at Bank of
Singapore.
But Vincent Wen, an investment manager at KCG Securities Asia,
noted that fears about trade tensions and other geopolitical risks
could re-emerge at any time. The weak March trade data from China
should also keep investors alert, he added.
"The stock markets are in an ongoing tussle between the bulls
and the bears, and investors shouldn't be too positive towards the
outlook," said Mr. Wen. But he is upbeat on consumption-related
stocks, which are still benefiting from China's steady inflation
growth.
While stock indexes in export-reliant Taiwan and Singapore were
also up more than 1%, indexes elsewhere in Asia saw gains of less
than 0.5%.
The Philippines' benchmark was the lone decliner. The PSEi fell
nearly 3%, hitting a one-year low and putting the month's slide at
5.2%.
Write to Joanne Chiu at joanne.chiu@wsj.com
(END) Dow Jones Newswires
April 19, 2018 00:31 ET (04:31 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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