Global stocks higher as oil prices climb
Global stock markets rose on Tuesday as a rebound in oil prices improved investor sentiment. A weakening of the Japanese yen against the dollar boosted exporters, helping Tokyo stocks rally nearly 4 percent.
KEEPING SCORE: Europe got off to a strong start with Britain’s FTSE 100 up 0.7 percent to 6,395.92. Germany’s DAX jumped 2.2 percent to 10,347.35 and France’s CAC 40 rose 1.3 percent to 4,565.56. Futures suggested Wall Street would start with modest gains as Dow futures rose 0.4 percent while S&P futures gained 0.5 percent.
OIL: Crude oil prices advanced following a hefty drop in the previous session due to the failure by oil-producing nations to agree on limiting output. Benchmark U.S. crude gained 69 cents to $40.47 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 58 cents, or 1.4 percent, to close at $39.78 a barrel on Monday. Brent crude, the international benchmark, rose 85 cents to $43.76 a barrel in London.
ANALYST’S TAKE: Oil “Prices were supported as news filtered through that production in Kuwait had been halved as workers were on strike over pay cuts,” said Alex Furber, senior client services executive at CMC Markets in Singapore.
ASIA’S DAY: Japan’s Nikkei rallied 3.7 percent to close at 16,874.44 after a sharp loss on Monday. South Korea’s Kospi finished at 2,011.36, up 0.1 percent, while Hong Kong’s Hang Seng index gained 1.3 percent to 21,436.21. China’s Shanghai Composite Index rose 0.3 percent to 3,042.82. Australia’s S&P/ASX 200 advanced 1 percent to 5,188.80. Stocks in Singapore and Indonesia rose but benchmarks in Taiwan and the Philippines were lower.
CURRENCIES: The yen resumed its slide with the dollar strengthening to 109.43 yen from 108.96 yen. The euro rose to $1.1336 from $1.1309.