Asia markets will open for trade on Wednesday following the firmer lead on Wall Street Tuesday and as oil prices rose more than 3 percent overnight.
Oil prices soared overnight after major U.S. oil producer Anadarko announced plans to reduce capital spending due to lower oil prices. Market sentiment was also boosted when de-facto OPEC leader Saudi Arabia said it would limit its crude exports in a bid to tackle oversupply.
Brent crude jumped 3.3 percent to settle at $50.20 a barrel, the first time prices ended the session above the $50 mark since early June, Reuters said. Meanwhile, U.S. West Texas Intermediate crude rose 3.3 percent to settle at $47.89.
In Asia, futures tipped a higher open for equities in Japan. Nikkei futures traded in Chicago were up 0.65 percent at 20,085 and Osaka futures were higher by 0.48 percent at 20,050. Both were above the benchmark index’s Tuesday close of 19,955.20.
Down Under, SPI futures edged down 0.38 percent at 5,705 compared to the S&P/ASX 200’s previous close of 5,726.597.
Stateside, major U.S. indexes closed higher on Tuesday after several large companies, including Caterpillar and McDonald’s, announced quarterly results that beat analyst expectations.
The S&P advanced 0.29 percent, or 7.22 points, to close at a record 2,477.13, the Dow Jones industrial average rose 0.47 percent, or 100.26 points, to end at 21,613.43 and the Nasdaq gained 0.02 percent, or 1.37 points, to close at 6,412.17.
In currencies, the dollar edged up after falling to a fresh 13-month low overnight. The dollar index, which measures the dollar against a basket of currencies, traded at 94.054 at 6:57 a.m. HK/SIN. Against the Japanese currency, the dollar firmed to fetch 111.89 yen compared to levels around the 111.1 handle seen earlier this week.
Stronger consumer confidence data released Tuesday and a narrow Senate vote to begin debate on the repeal of Obamacare in the U.S. were factors that contributed to the slight recovery in the dollar, National Australia Bank Director of Economics David de Garis said in a morning note.
Meanwhile the common currency rose to its strongest levels against the dollar since August 2015 in the overnight session, Reuters said. The euro traded at $1.1646 at 7:05 a.m. HK/SIN after breaching the $1.17 level overnight.
In corporate news, Japan’s Toshiba was likely to be in the spotlight after the company’s board announced it would meet with other bidders on Wednesday, Reuters said. Western Digital and Foxconn were among the companies from which Toshiba will be reviewing offers, a source told Reuters.
Toshiba announced in June that a consortium led by the Innovation Network Corporation of Japan was the company’s preferred bidder for the sale of its chip unit. However, the company has been unable to secure an agreement with the INCJ-led group.
On the economic calendar for Wednesday, Australia second-quarter CPI will be expected at 9:30 a.m. HK/SIN. Singapore industrial production data for the month of June is due at 1:00 p.m. HK/SIN.
Markets will also anticipate the end of the Federal Open Market Committee’s (FOMC) two-day meeting Wednesday U.S. time for signals about the Federal Reserve’s monetary policy plans.
Source: cnbc china
Asia markets to open in wake of oil surging more than 3%, Wall Street rising