Oil rose Monday after OPEC+ considered a reduction to production this week. Asia shares were mixed due to holidays in the Asia-Pacific region which could lead to thin trading.
U.S. crude oil rose 3.01%, to $81.88 a barrel after OPEC+ sources informed Reuters that oil production could be reduced by anywhere from 500,000 to one million barrels per day. Brent crude oil rose 2.9% to $87.65 a barrel.
The MSCI’s broadest index of Asia-Pacific shares, outside Japan, was down 0.43 percent on the first trading day. This is the fourth consecutive session of decline.
The S&P/ASX 200 index dropped 0.15% in Australia because some states observe a public holiday.
The Hang Seng index in Hong Kong fell 0.64%.
Japan’s Nikkei 225 index was however up 0.72% following positive quarterly earnings from Mimasu Semiconductor, which boosted chip shares.
South Korea observes a Monday national holiday, while China and Hong Kong have just entered Golden Week.
Robert Carnell, ING’s regional head for research, stated in a note that trading was likely to be slow because of the holiday season.
After hitting an overnight high of 144.89, the dollar was flat against the Japanese yen at 144.75. Shunichi Suzuki, Japan’s finance minister, stated this morning that the government will take “decisive measures” to stop sharp currency movements.
Later in the day, the September data for U.S. ISM manufacturing will be the focus of attention.
Redmond Wong, a Saxo Bank market strategist, wrote that “ISM manufacturing is unlikely” to dampen optimism about the US economy.
Tuesday’s meeting will be at the Reserve Bank of Australia. Markets are expecting another 50 basis points rate increase and the release of CPI inflation data for Japan.
Spot gold rose 0.47% to $1667.2208 per ounce.
The leading cryptocurrency Bitcoin saw a 1.15% drop to $19,200
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