Economic security

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Asian Stocks Rise as Crude Extends Gains While Kiwi Drops

By Emma O’Brien and Yuko Takeo  Dec 22, 2014 3:56 AM GMT+0300  

Asian stocks rose, with the regional index headed for its steepest three-day advance in almost two months, as commodity stocks climbed amid gains in crude oil. New Zealand’s dollar retreated with silver.

Energy and mining stocks drove a 0.3 percent climb in the MSCI Asia Pacific Index by 9:54 a.m. in Tokyo, bringing its gain since Dec. 18 to 2.7 percent, the most since Oct. 22. Japan’s Topix index rose 0.2 percent and Australian shares jumped 1.1 percent asBrent crude rose for a second day. The kiwi slid 0.6 percent after a drop in consumer confidence, as the Australian dollar and Korean won climbed. Silver lost 0.3 percent. Futures on the Standard & Poor’s 500 Index were little changed.

The U.S. is projected to post faster than initially estimated growth for the third quarter this week, while the Bank of Japan, grappling with a recession, issues its December economic report today. The Federal Reserve pledging patience on the timeline for U.S. interest-rate increases last week helped fuel the biggest weekly jump in a gauge of global stocks since the end of October. Saudi Arabia’s oil minister said he’s is confident crude prices will rebound as oil demand recovers.

“In general, investors seem to be feeling that it’s safe to buy after the Fed’s shown that they’re not in a hurry to raise rates,” Shoji Hirakawa, chief equity strategist at Okasan Securities Co. in Tokyo, said by phone today. How oil “might move towards next week hasn’t become clear, so it could still disrupt markets.”

Oil Markets

Brent added 0.5 percent to $61.67 a barrel, extending Dec. 19’s 3.6 percent surge, the most since October 2012. The oil blend settled at $59.27 Dec. 18, the lowest close since May 2009 and is still down 44 percent this year. West Texas Intermediate crude gained 0.5 percent today to $57.41 per barrel after soaring 4.5 percent at the end of last week.

While currently staging a bit of a rebound, crude is still in a bear market as the largest U.S. oil output in 30 years collides with slowing global demand for the commodity amid signs of slowing growth from China to Europe.

Saudi Oil Minister Ali Al-Naimi said at a conference in Abu Dhabi at the weekend that the oil market will recover and fossil fuel will remain the main source of energy for decades to come. Mohammed Al Sada, Qatar’s energy minister, called on crude producers outside of OPEC to cut their “irresponsible” output on the sidelines of the conference. The Organization of Petroleum Exporting Nations last month refrained from reducing its own production target of 30 million barrels a day.

Source: http://www.bloomberg.com/news/2014-12-21/asian-futures-signal-gains-on-oil-jump-dollar-holds-gain.html