Mixed trading on Asian bourses
Oil prices jump and Israel moves to prop up the shekel; Shanghai reopened after a weeklong holiday, while Tokyo and several other Asian markets were closed for holidays on Monday
Bangkok: Crude oil prices surged, while stocks were mixed on Monday after the Israeli government declared war following deadly attacks by Hamas from the Gaza Strip. US futures declined. Oil prices gained about $3 a barrel. Conflict in the Middle East often raises the specter of higher oil prices given the risk of disruptions to supplies.
“Disruptions or escalations in the region can have far-reaching implications for energy markets, global supply chains, and geopolitical dynamics,” Stephen Innes of SPI Asset Management said in a commentary.
The fighting has not yet had any discernible impact on oil output, but geopolitical escalations in the Middle East typically lead to a ‘buy-first-ask-questions-later’ response, he said. Oil prices had eased back from highs of the mid $90 range last month in recent days, falling sharply last week. Early Monday, US benchmark crude oil was up $3.14 at $85.93 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 48 cents on Friday. Brent crude, the pricing basis for international trading, advanced $2.91 per barrel to $87.49 per barrel. On Sunday, Tel Aviv’s main stock benchmark closed 6.5 per cent lower after the attacks. Early Monday, Israel’s Central Bank said it will sell up to $30 billion in foreign exchange to prop up the shekel, which fell near an 8-year low early Monday.
It also said it will provide up to $15 billion to support market liquidity. The shekel fell to a near eight-year low against the U.S. dollar in early trading Monday of about 3.9 shekels per dollar. In Asian trading, Shanghai reopened after a weeklong holiday, falling 0.5per cent to 3,095.44. The Hang Seng in Hong Kong rose 0.6 per cent to 17,589.28 after its market reopened for afternoon trading. It was closed in the morning due to typhoon warnings.
