It's 'risk on' in Asia as stocks and commodities surge

AARON TAM / AFP / Getty Images

It’s risk on for financial markets in Asia on Thursday, boosted by an enormous surge in crude oil prices overnight, along with strong economic data released by China.

Stocks across the region are trading higher, led by the energy sector following OPEC’s decision to overnight to cut output over the next six months by 1.2 million barrels daily to 32.5 million barrels per day.

That, along with a strong manufacturing PMI print in Asia which rose to the equal highest level seen sine April 2012, is also helping to boost sentiment.

Stocks

  • Australia ASX 200 5482.30 , 0.77%
  • NZ NZX 50 6913.99 , 0.25%
  • Japan TOPIX 1495.26 , 1.76%
  • Shanghai Comp 3267.08 , 0.52%
  • Shenzhen Comp 2118.03 , 0.53%
  • HK Hang Seng 22978.00 , 0.83%
  • Sth Korea KOSPI 1985.58 , 0.11%
  • Sinagpore STI 2919.18 , 0.48%
  • Taiwan TAIEX 9271.13 , 0.33%
  • Philippines PSI 6916 , 1.99%
  • Indonesia JKSE 5198.58 , 0.96%
  • Malaysia KLCI Index 1627.86 , 0.54%
  • Thailand SET 1517.92 , 0.51%
  • India Nifty 50 8224.5 , 0.00%
  • S&P 500 Futures 2201.5 , 0.13%

After a strong rally overnight, the US dollar is trading mixed in Asia. The broader US dollar index is trading slightly softer due to small gains in both the euro and the yen.

The Chinese manufacturing PMI report is helping to boost the Australian dollar despite the release of weak business capital expenditure figures for the September quarter earlier in the session.

Currencies

  • AUD/USD 0.7401 , 0.26%
  • NZD/USD 0.7077 , -0.06%
  • USD/JPY 114.18 , -0.23%
  • USD/CNY 6.8943 , 0.15%
  • USD/CNH 6.9053 , -0.13%
  • USD/HKD 7.7550 , -0.02%
  • USD/KRW 1172 , -0.36%
  • USD/SGD 1.4300 , -0.22%
  • USD/TWD 31.87 , -0.06%
  • USD/PHP 49.77 , 0.15%
  • USD/MYR 4.466 , 0.04%
  • USD/IDR 13578 , 0.21%
  • USD/THB 35.67 , -0.06%
  • USD/INR 68.44 , -0.22%
  • US Dollar Index 101.48 , -0.02%

After jumping by over 9% on Wednesday, crude prices are trading flat. Perhaps reflective of the risk on tone elsewhere, along with US dollar strength overnight, gold and silver are trading weaker.

Bulk and base metals are also trading higher, no doubt assisted by the Chinese PMI report.

Commodities

  • Brent Crude $51.84 , 0.00%
  • Gold $1,170.48 , -0.19%
  • Silver $16.37 , -0.67%
  • SHFE Copper ¥47,230 , 1.74%
  • SHFE Aluminium ¥13,435 , 0.56%
  • SHFE Zinc ¥22,980 , -0.09%
  • SHFE Nickel ¥92,810 , 0.40%
  • SHFE Rebar ¥3,127 , 2.86%
  • DCE Iron Ore ¥576.50 , 1.86%
  • DCE Coking Coal ¥1,321.50 , 1.03%
  • DCE Coke ¥1,818.00 , 0.94%

Government bond yields are also modestly higher, boosted by the higher crude price flowing into inflation expectations and improved investor sentiment.

10-Year Government Bond Yields

  • United States 2.386% , 0.019%
  • Japan 0.023% , -0.001%
  • Australia 2.801% , 0.060%

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