Asian stocks snap losing streak despite oil slump

SEOUL, Korea, Republic Of - Asian stocks snapped a losing streak in global markets Thursday after Wall Street trimmed losses and oil paused after a steep fall, but analysts said sentiment was fragile and more losses could be in store.

See Full Article

KEEPING SCORE: Tokyo's Nikkei 225 rose 0.8 per cent to 16,552.88 and South Korea's Kospi gained 0.7 per cent to 1,858.33. Hong Kong's Hang Seng advanced 0.4 per cent to 18.971.97. Australia's S&P/ASX 200 gained 1.1 per cent to 4,894.10. China's Shanghai Composite rose 0.5 per cent to 2,990.49. Markets in also rose in Taiwan and Southeast Asia.

GLOBAL TURBULENCE: Stock markets have taken a beating along with the price of oil as investors believe stock prices have risen too high at a time when the near-term global economic outlook is for modest growth rather than a strong upswing. The IMF lowering its forecast for global growth this year to 3.4 per cent, oil falling below $30 a barrel and China's growth slowing to a 25-year low last year have all contributed to the sell-off this week. The European Central Bank is expected to keep interest rates on hold at ultra-low levels when its governing council meets later in the day as it monitors risks from turmoil in global markets.

THE QUOTE: The S&P 500 clawing back from a 3.7 per cent fall on Wednesday "should provide a morsel of sorely-needed confidence into the equity markets in Asia," Bernard Aw, a market strategist at IG in Singapore, said in a report. "But don't expect a miracle," he said. "It is not advisable to interpret any rallies as evidence that we have seen a near-term bottom. As disciples of technical analysts know very well, a downtrend is typically marked by periods of rebounds."

WALL STREET: On Wednesday, U.S. stocks closed down but off their lows. The Dow closed down 1.6 per cent to 15,766.74. The S&P 500 index fell 1.2 per cent to 1,859.33, its lowest closing level since April 2014. The Nasdaq composite lost 0.1 per cent to 4,471.69, closing at its lowest since October 2014.

ENERGY: The price of oil rose slightly after suffering its worst daily drop since September. Benchmark U.S. crude for March delivery was up 25 cents to $28.60 a barrel in electronic trading on the New York Mercantile Exchange. The February contract, which expired Wednesday, dived 6.7 per cent, or $1.91, to close at $26.55 in New York, which was U.S. oil's lowest level since May 2003. Brent crude, a benchmark for international oils, added 29 cents to $28.17 per barrel in London.

CURRENCIES: The dollar rose to 117.25 yen from 117.19 yen in the previous trading session. The euro rose to $1.0885 from $1.0874.



Advertisements

Latest Economic News

  • A Canada Day miracle: Gas prices at 7-year low for July long weekend

    Economic CBC News
    In what might be described as a Canada Day miracle, the price of gasoline across the country is expected to be the lowest it's been in seven years for a July long weekend. According to research done by GasBuddy.com, gasoline prices in Canada are averaging $1.04 per litre, 14 cents per litre lower than the 10-year average. Source
  • Tim Hortons offering poutine doughnut on Canada Day — but only in the U.S.

    Economic CBC News
    To celebrate Canada's 150th birthday, Tim Hortons is serving up patriotic food. On the menu: a doughnut smothered in poutine and an Iced Capp coffee drink topped with whipped cream, maple flakes and bacon bits. Source
  • Online thrift store ThredUp expanding to Canada

    Economic CTV News
    TORONTO - After operating in the U.S. for nearly a decade, online thrift store ThredUp is expanding into Canada and setting its sights on shoppers who want to stay stylish but save their dimes. Some retail experts caution the company may find it difficult amid the growing popularity and proliferation of charity-based organizations and fast-fashion retailers who already appeal to the budget-conscious. Source
  • Global shares mixed as Asia rally sputters in Europe

    Economic CTV News
    HONG KONG -- Global shares are mixed after a rally in Asia sputtered out in early European trading. KEEPING SCORE: European shares fell back after opening mostly higher. Britain's FTSE 100 gained 0.3 per cent to 7,407.33 and Germany's DAX ticked down a fraction of a per cent to 12,645.28. Source
  • Asian stocks rally after Wall Street rebounds

    Economic CTV News
    HONG KONG -- Asian shares rallied Thursday following Wall Street's rebound as investors regained confidence in the global economic outlook. KEEPING SCORE: Japan's benchmark Nikkei 225 index rose 0.6 per cent to 20,242.63 and South Korea's Kospi advanced 0.7 per cent to 2,399.41. Source
  • Tip Top Tailors owner sells assets in deal that will see 140 stores remain open

    Economic CTV News
    TORONTO -- The assets of Grafton-Fraser Inc., owner of Tip Top Tailors and other menswear chains, have been bought by U.S.-based GSO Capital Partners in a move to stabilize the Canadian retail business. As part of the agreement, the new operators of the Toronto-based retailer is keeping 140 stores open across the country, while 12 underperforming locations have been closed, affecting 100 jobs. Source
  • Staples to be acquired by Sycamore in $6.9B US deal

    Economic CBC News
    Private equity firm Sycamore is buying office supplies chain Staples for $6.9 billion US. The companies said Wednesday that shareholders of Framingham, Mass.-based Staples will get $10.25 US per share. Staples stock had closed Wednesday up 77 cents, or 8.4 per cent, to $9.93 on a late-afternoon report of a deal. Source
  • Cyberattack spreads across the globe, but its origins and purpose remain murky

    Economic CBC News
    As a cyberattack continued to spread among nations and corporations on Wednesday, the identity and motives of the attackers remain a mystery. Ports, hospitals and banks around the globe have been hit by a version of ransomware being called ExPetr, similar to Petya but with a different functionality. Source
  • Head of NEB welcomes overhaul recommendations

    Economic CTV News
    CALGARY - The head of the National Energy Board says the proposed overhaul of the federal regulator will make it more suited to the challenges of the 21st century. Speaking at the sidelines of an industry safety workshop, NEB chairman Peter Watson says recommendations last month by a modernization panel could fix some of the limitations of the regulator and help it keep up with the times. Source
  • Boeing seeks delay in duty ruling on petition against Bombardier

    Economic CBC News
    Bombardier may have to wait an extra two months to find out if its CSeries commercial jets will be hit by punishing U.S. duties. Boeing has requested that the U.S. Commerce Department delay its preliminary determination on its petition until Sept. Source