Asian markets mix with soaring oil prices

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BEIJING – Asian stock markets were mixed on Monday after soaring crude prices following the attack on Saudi Arabia's largest oil processing facility.

Hong Kong's benchmark fell by 1.1%, while Seoul advanced and Shanghai and Sydney did not change much. Japanese markets were closed for holidays.

The Shanghai Composite Index remained unchanged at 3,030.82 as trading resumed after a three-day holiday weekend. The Sydney S & P-ASX 200 gained 2 points at 6,670.01.

The Seoul Kospi grew by 0.5% to 2,060.06 while the Southeast Asian markets declined.

The reference price for US crude jumped by more than $ 5 per barrel following the attack on the Saudi Aramco oil group's site in Abqaiq, whose Yemeni rebels claimed responsibility. The Brent Brut, the international standard, was up $ 6 after reaching nearly $ 8 at one point.

Soaring crude prices have hurt equity markets and other businesses with large fuel bills and put upward pressure on inflation expectations. At the same time, rising prices are boosting oil exporters, such as Malaysia, and temporarily raising share prices for crude oil producers.

"This is obviously not a good day if you are an oil importer," said Christ Weston of Pepperstone Group in a report.

"It's not just a question of who or what caused the attacks, but some wondered if we would see other attacks and if the Saudi infrastructure was vulnerable," he said. said Weston.

The Hang Seng index dropped to 27,040.47 points as a result of new anti-government protests over the weekend. Hong Kong Airport has announced that passenger traffic has dropped 12% in August compared with the previous year. The demonstrations that began three months ago are starting to have an economic impact.

"Aside from oil purchases, investors would have already worried today in Asia while a warring China will come back from vacation," said Jeffrey Halley of Oanda in a statement.

Investors' concern over the US-China tariff war has eased following conciliation actions last week by both sides in anticipation of the expected talks on their business and technology dispute the month next.

President Donald Trump has postponed Oct. 1 tariff increases until Oct. 15, suggesting that they could be postponed indefinitely if negotiations proceed. Beijing on Friday announced the lifting of punitive duties on soybeans, the main product imported from China by the United States, and some other agricultural products.

Despite this, both sides have given no indication of progress in resolving the fundamental problems of the broad trade and technology dispute that threatens to curb global economic growth.

On Wall Street, the Standard & Poor's 500 Index posted three consecutive weekly gains on Friday, as key US indices closed the day lower.

Declining technology stocks, as well as losses for real estate and consumer-focused companies, offset significant gains elsewhere in the market, including major Wall Street banks and industrials.

Investors are looking for a possible reduction in the US interest rate by the Federal Reserve this week. The central bank lowered its key rate by a quarter point in July, its first reduction in a decade, in an effort to help maintain US economic growth.

The S & P 500 index slipped 0.1% to 3,007.39. The Dow Jones Industrial Average rose 0.1% to 27,219.52.

Nasdaq, a heavy technology, fell 0.2% to 8,176.71.

ENERGY: The benchmark US crude has risen from $ 4.86 to $ 59.71 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost 24 cents on Friday to close at $ 54.85. Brent jumped $ 5.88 or 9.8% to $ 66.10 a barrel.

CURRENCY: The dollar fell to 107.82 yen, against 108.09 yen on Friday. The euro has changed little at $ 1.1075. / gsg

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