Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Asian shares struggle, oil firms on Iraq anxiety

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/16/2014 | 08:47am CEST

Most Asian share markets struggled on Monday, as crude extended gains and tested nine-month highs on fears the insurgency in Iraq could spread - disrupting oil exports.

The gloom was seen overshadowing European bourses as well, with financial spreadbetters predicting Britain's FTSE 100 to open down around 0.2 percent, Germany's DAX off 0.3 percent, and France's CAC 40 to open 0.4 percent lower.

"The one factor in play at the moment is an escalation of Iraq concerns and how this is pushing energy prices higher," IG Market Strategist Stan Shamu said in a note to clients.

Sunni insurgents seized a mainly ethnic Turkmen city in northwestern Iraq on Sunday, while the United States boosted security for its diplomatic staff in Baghdad and said some personnel had evacuated from the embassy.

Brent rose about 0.6 percent to $113.16 per barrel, after touching $114.69 on Friday, its highest since September. Brent added more than $4 last week. U.S. crude climbed about 0.4 percent to $107.37, approaching Friday's nine-month high of $107.68.

The rising oil prices and shrinking risk appetite weighed on emerging Asian currencies, with the rupee hitting a five-week low and the rupiah and the South Korean won also withering.

Gold hit its highest in nearly three weeks as the Iraqi crisis supported the metal's safe-haven appeal, rising about 0.1 percent to $1,277.80 an ounce after hitting $1,278.74 earlier in the session - the highest since late May.

MSCI's broadest index of Asia-Pacific shares outside Japan was down for most of the session, moving away from a three-year high hit a week ago, but wavered in and out of positive territory in late afternoon trading.

China's Shanghai Composite Index added 0.7 percent. Some publicly listed Chinese banks qualified for a reduction in reserve requirements announced by the central bank last week, bankers told Reuters on Monday.

Japan's Nikkei stock average ended down 1.1 percent at a two-week low, dragged lower by fears of higher materials costs.

"Investors aren't expecting material costs will rise soon and have an immediate impact on companies' profits, but they are wary of these risks in the longer run," said Hikaru Sato, a senior technical analyst at Daiwa Securities. "The geopolitical concerns are lowering risk appetite."

Wall Street stocks edged higher on Friday, but ended the week with modest losses.

The dollar slipped about 0.3 percent to 101.76 yen, moving back toward a two-week low of 101.60 yen marked on Thursday. The euro shed 0.1 percent to buy 137.90 yen.

Against the greenback, the euro added about 0.1 percent on the day to $1.3551.

The dollar got little help from U.S. Treasury yields, which edged down as prices rose in response to waning risk appetite. The yield on benchmark 10-year Treasuries stood at 2.587 percent, down from Friday's U.S. close of 2.604 percent.

For further clues on the direction of U.S. rates, investors will be focusing on the U.S. Federal Reserve this week as it concludes its policy meeting on Wednesday. Markets will be watching for any signals on when the U.S. central bank might begin hiking interest rates.

"Key points are if Fed Chair (Janet) Yellen upgrades her view on the economic view in light of recent economic indicators and if the central bank raises its yield forecast, which would reignite expectations for earlier rate hikes," said Junichi Ishikawa, market strategist at IG Securities in Tokyo.

"Whether geopolitical risks have any currency impact depends on how the situation in Iraq and Ukraine impacts the equity markets, but so far their reaction appears limited," he said.

Other data in focus this week is China's latest report on foreign direct investment on Tuesday, and then house price figures on Wednesday. Investors would be concerned if the latter were to show a slowdown in property price growth, raising questions about the outlook for that sector especially given the broader weakness in the economy.

(Additional reporting by Ayai Tomisawa and Shinichi Saoshiro; Editing by Eric Meijer & Shri Navaratnam)

By Lisa Twaronite

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
12:32p BNN TECHNOLOGY : Expands Partnership With Manchester City Football Club
12:32p BARCLAYS : Form 8.5 (EPT/NON-RI) - SKY PLC
12:32p BARCLAYS : Form 8.5 (EPT/NON-RI) - JOHN WOOD GROUP PLC
12:32p GNB FINAN : Elizabethville historical society gets gift of home
12:32p GLOBAL HALOGEN-FREE FLAME RETARDANT CHEMICALS MARKET TO GROW AT A CAGR OF 8.25% BY 2021 : Growing Demand for Phosphorus-based Flame Retardants - Research and Markets
12:31p LILLY ELI & CO : Results of Operations and Financial Condition (form 8-K)
12:31p STIFEL FINANCIAL : Schedules First Quarter 2017 Financial Results Conference Call
12:31p CONTINENTAL GOLD : Provides 2017 Operations Update for its Buritica Project
12:31p OIL STATES INTERNATIONAL : Technical Roundup on Oil & Gas Stocks -- Bristow, Basic Energy Services, Archrock, and Oil States International
12:31p ITURAN LOCATION AND CONTROL LTD : . Schedules First Quarter 2017 Results Release and Conference Call for Wednesday, May 17, 2017
Latest news
Advertisement
Hot News 
11.95%LVMH's Arnault to take full control of Christian Dior
-6.59%WHITBREAD : Britain's Costa Coffee-owner Whitbread sees tougher times ahead
-4.11%TELEFONAKTIEBOLAGET LM ERICSSON : Ericsson Pushed to Hefty Loss by Write-Downs, Restructuring Costs
1.34%AKZO NOBEL : Dutch Economic Affairs minister says still opposed to Akzo Nobel takeover
2.23%NOVARTIS : 1Q Net Income Down 17%, Hurt by Drug Failure
Most Read News
04/24 Ahead of NAFTA talks, U.S. sets 20 percent duties on Canadian softwood lumber
01:29a TOSHIBA TO START TAKING BIDS IN JUNE FOR ITS SWISS UNIT LANDIS+GYR : Kyodo
02:35aDJLVMH : to Buy Christian Dior Couture for EUR6 Billion
01:40aDJNOVARTIS : 1Q Net Income Down 17%, Hurt by Drug Failure
01:19aDJSAP : 1Q Net Profit EUR521 Million, Revenue EUR5.3 Billion
Most recommended articles
04/21 TWENTY FIRST CENTURY FOX : Government extends period for regulators to report on Sky-Fox merger
06:29a BERNARD ARNAULT : LVMH's Arnault to take full control of Christian Dior
06:28a LVMH's Arnault to take full control of Christian Dior
06:27aDJSINGAPORE PRESS : Buys Local Health-Care Firm for S$164 Million
06:20aDJADIDAS : 1Q 2017 -- Forecast