Asian shares cautious as oil eases and central banks meet
Summarised from 2 outlets · Updated 26 Oct, 01:31 · Archive
Asian share markets opened cautiously as oil prices fell from six-month highs ahead of major central bank meetings this week.
Share markets across Asia opened cautiously on Monday as oil prices eased from six-month highs. Brent crude fell one per cent to $115.48 a barrel, whilst US crude futures dropped 1.1 per cent to $102.08 a barrel. Japan's Nikkei index dipped 0.8 per cent after losing four per cent the previous week. South Korea's market fell 0.4 per cent, having shed almost 19 per cent so far this month, whilst MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1 per cent.
The oil decline came amid reports that Qatari mediators were in Tehran on Sunday seeking to de-escalate regional tensions in coordination with the United States. Last week, Brent futures had jumped 6.2 per cent to their highest weekly close since mid-2022 as Houthi attacks in Saudi Arabia raised concerns over energy supply.
Central banks meeting this week face pressure from rising oil prices. New Zealand's central bank is widely expected to raise rates on Wednesday. Bruce Kasman, global head of economics at JPMorgan, said 'G3 central banks are likely to remain on hold, but Canada should start its tightening cycle and first moves are expected from the UK and Sweden next month'. Markets assume the US Federal Reserve will hold rates but imply an 80 per cent chance of a rise in December.
How it is being reported
- Asian shares make cautious start, Brent easesThe Nikkei has dipped after Wall St futures inched up ahead of a flurry of central bank meetings and company earnings reports, while oil eased.Perth Now · 26 Oct, 01:00
- Asian shares make cautious start, Brent easesThe Nikkei has dipped after Wall St futures inched up ahead of a flurry of central bank meetings and company earnings reports, while oil eased.The West Australian · 26 Oct, 00:59
In this story: Bank of Japan · European Central Bank · Federal Reserve · New Zealand · Japan · South Korea · United States · Saudi Arabia
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