Asian equities traded mixed on the first day of the final trading week for 2015. Japanese shares managed to rise following a rebound in crude oil prices from multiple-year lows.
MSCI’s broadest index of Asia-Pacific shares outside Japan gave up earlier modest gains and were down 0.4 percent. The index was on track for an 11 percent loss this year.
Shanghai shares fell 1.3 percent on Monday, with banking shares leading the fall, following weak Chinese industrial output data. Hong Kong’s Hang Seng dropped 1.0 percent while South Korea’s KOSPI fell 1.1 percent and Japan’s Nikkei 225 rose 0.7 percent, with soft domestic production and retail data offset by a rebound in crude oil prices.
Investors across asset markets were without some of the usual leads as most global markets were closed on Friday for Christmas. The British and Australian markets were closed and will remain closed today, while those in Germany and France will reopen.
Crude Futures Down
U.S. crude futures for February delivery were down 27 cents, or 0.71 percent, at $37.83 a barrel in Asian trade, nearing parity with the internationally traded Brent futures, which were down 13 cents, or 0.34 percent, at $37.76 a barrel. U.S. crude futures posted their biggest weekly gain since early October last week, tacking on 9.7 percent for the holiday-shortened trading week.
J.P. Morgan Asset Management’s chief Asia market strategist, Tai Hui, said that the huge supply glut in oil is not going to change anytime soon and added “If you look at demand and supply dynamics, it does suggest that oil prices should not be at $30. It should be slightly higher. But the reality again is that OPEC seems to be still very committed to this game to price out its competitors.”
In currencies, the dollar fetched 120.46 yen, hovering near its two-month low of 120.05 on Friday. The dollar has lost some steam, with investors locking in profits after the Federal Reserve this month hiked interest rates for the first time in nine years.
