Asian energy firms suffered further losses on Thursday (Aug 25) after another sharp fall in oil prices, while currency traders moved cautiously the day before a key speech by Federal Reserve boss Janet Yellen.
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In afternoon trade on Tuesday West Texas Intermediate fell one percent to 46.96 and Brent lost 0.7 percent to 48.84.
“Global markets have rallied over the past seven weeks, but those gains have looked increasingly exhausted over the past three”, James Woods, a strategist at Rivkin Securities in Sydney, said.
Futures on the China A50 Index and the Hang Seng Index both slid 0.1 per cent in their most recent trading. The S&P 500 Index closed near a record high as reports showing a surge in American new home sales and a slowdown in manufacturing brought into question the hawkish tone of recent comments from Fed officials. Hawkish remarks from Fed officials and lackluster data has stymied advances that has led to a series of all-time highs for USA stocks as investors turn their attention over the prospects of higher borrowing costs.
Hong Kong’s Hang Seng Index dropped 0.8 percent, the most since August 3, as property companies and banks paced losses.
Traders, however, are uncertain about the timing with many convinced that the Fed won’t move on rates in September. New Zealand’s S&P/NZX 50 Index fell 0.8 percent, retreating from an all-time high. Chinese shares dropped yesterday amid concern that a weaker yuan will curb further stimulus from the government. Australia’s S&P/ASX 200 Index added 0.1 percent and Singapore’s Straits Times Index gained 0.6 percent.
Exporters were mixed, with Toyota Motor Corp up 0.1 percent, Nissan Motor Co rising 1.1 percent and Panasonic Corp declining 1.6 percent.
The Nikkei Stock Average NIK, -0.25% was down 0.3% at 16,551.79 points, tracking declines in the USA market.
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Oil fell as industry data showed US crude stockpiles expanded, adding to a global glut of supply.
