Asian stocks mostly weaker as oil slips

SEOUL, Korea, Republic Of - Asian stock markets were mostly weaker on Tuesday as the price of crude oil turned lower following a surge overnight.

See Full Article

KEEPING SCORE: Japan's Nikkei 225 drifted 0.2 per cent lower to 16,074.71 while South Korea's Kospi was 0.2 per cent lower to 1,912.71. Hong Kong's Hang Seng index fell 0.6 per cent to 19,346.46 and Shanghai Composite Index in mainland China dropped 1.3 per cent to 2,890.29. Australia's S&P/ASX 200 was down 0.4 per cent to 4,983.90. Stocks in Singapore and the Philippines were higher but stocks in Taiwan and Indonesia were lower.

ENERGY FORECAST: On Monday, the International Energy Agency said it does not expect oil prices to recover significantly until 2017, but it expects slower growth in global supplies. Fatih Birol, executive director of the IEA, said oil would rise gradually to about $80 a barrel. The comments by the group of major oil-importing countries triggered a surge in crude oil prices and rallies in global stock markets overnight but they could not be sustained.

ANALYST'S TAKE: Despite the forecast that the glut of crude will be gradually reduced, "we remain cautious at this juncture, since so far, Iran and Iraq remained non-committal in terms of production cuts though both countries welcomed the initiative," Mizuho Bank said in a daily commentary.

OIL: Benchmark U.S. crude lost 53 cents or 1.6 per cent at $32.86 per barrel in New York. On Monday the contract jumped $1.56 to close at $33.39 a barrel. Brent crude, which is used to price international oils, fell 50 cents to $34.19 per barrel in London.

WALL STREET: U.S. stocks jumped on Monday as a surge in the price of oil lifted energy stocks. The Dow Jones industrial average gained 1.4 per cent to 16,620.66. The Standard & Poor's 500 index climbed 1.5 per cent to 1,945.50. The Nasdaq composite index added 1.5 per cent to 4,570.61.

CURRENCIES: The dollar fell to 112.10 yen from 112.89 yen while the euro rose to $1.105 from $1.103.



Advertisements

Latest Economic News

  • Italian PM 'guarantees' savers' accounts in 2 troubled banks

    Economic CTV News
    ROME -- Italy's premier says holders of accounts in two troubled Italian banks will have their savings guaranteed despite insolvency proceedings. Premier Paolo Gentiloni was referring to Veneto Banca and Banca Popolare di Vicenza, each struggling with unpaid loans. Source
  • Forget the poop scooping: who will pay the bills for your pet?

    Economic CBC News
    The scene is so common, it's cliché: Your adorable child looks longingly into your eyes, begging for a pet. You somehow navigate the emotionally fraught minefield of cat vs. dog. Then it's time to talk chores. Source
  • 'Eventually, many will run out': How an LCBO strike could impact restaurants and bars

    Economic CBC News
    A long drawn-out strike by liquor store workers could have a significant impact on Ontario's restaurants, wine importers, bars and consumers — but it may offer a boon to some local wineries. "Eventually, many [restaurants and bars] will run out, if not all, if it goes into a month, two months," said Tony Elenis, president and CEO of the Ontario Restaurant Hotel and Motel Association. Source
  • Ivanka Trump ordered to testify in dispute with shoe company

    Economic CTV News
    NEW YORK -- Ivanka Trump must testify in a dispute with an Italian shoemaker over one of her company's shoe designs, a judge said Friday. U.S. District Judge Katherine Forrest rejected a request by the senior White House aide's lawyers that she be blocked from submitting to a deposition in the trademark infringement lawsuit brought by Aquazzura Italia SRL against her and her company IT Collection LLC. Source
  • Cooling measures already affecting hot Toronto housing market: survey

    Economic CTV News
    The recent intervention by the Ontario government to cool the Toronto-area’s hot housing market is already having an impact on sellers and buyers plans for the year, according to a new poll. At the end of April, Ont. Source
  • Why is the American teen summer job disappearing? [Video]

    Economic Toronto Sun
    WASHINGTON — It was at Oregon’s Timberline Lodge, later known as a setting in the horror movie “The Shining,” where Patrick Doyle earned his first real paycheque. He was a busboy. The job didn’t pay much. But Doyle quickly learned lessons that served him for years as he rose to become the CEO of Domino’s, the pizza delivery giant: Source
  • Waiting for a Canadian housing crash? Warren Buffet bets against it buying 38% stake in Home Capital Group Inc.

    Economic Toronto Sun
    Warren Buffett's deal to back Home Capital Group Inc. does more than support a struggling mortgage lender -- it's a vote of confidence for a housing market that everyone from investors to global ratings companies say is a bubble ready to burst. Source
  • CIBC looks to generate quarter of earnings from U.S.

    Economic CBC News
    CIBC closed its acquisition of Chicago-based PrivateBancorp on Friday, securing its foothold in the U.S. where CEO Victor Dodig said the bank hopes to one day generate a quarter of its earnings. The Canadian bank now earns roughly five per cent of its profits in the U.S. Source
  • CIBC closes acquisition of U.S.-based PrivateBancorp

    Economic CTV News
    TORONTO -- CIBC closed its acquisition of Chicago-based PrivateBancorp on Friday, securing its foothold in the U.S. where CEO Victor Dodig said the bank hopes to one day generate a quarter of its earnings. The Canadian bank (TSX:CM) now earns roughly five per cent of its profits in the U.S. Source
  • Consumer demand for debt as high as it has ever been, Equifax says

    Economic CBC News
    Canadians' appetite for debt is as insatiable as ever, a new report from credit monitoring firm Equifax says. Equifax calculates that Canadian consumers owed $1.729 trillion at the end of the first quarter, an increase of 6.9 per cent in a year. Source