FXStreet (Mumbai) – The rebound in oil prices revived the appetite for risk and therefore, aided the recovery in the Asian stock markets. The Japanese stocks led the advance in Asia, while China’s equities still remain under pressure on the back of a stronger yuan fix.
Asian stocks rally with copper, oil
The Japanese stocks rebounded from one-year lows and rallied on the back of rising demand for risky assets, which weighs on the safe-haven yen and boosts the exports’ stock. Meanwhile, USD/JPY trades 0.32% higher at 117.30 and the Nikkei bounces +1.40% to 16,644.
The Australian stocks also witnessed a solid recovery in tandem with industrial metals and oil, which drove the mining and energy stocks higher, with the S&P/ASX 200 index now gaining 1.08% to 4,894. Moreover, rising futures on the S&P 500 and the DJIA by nearly 0.80% also lifted the sentiment around the domestic stock markets.
While the Chinese markets failed to benefit from the returning risk-on trades as well as from the huge injections made by PBOC in the money-markets, and fell in today’s trade so far. The Shanghai Composite index drops nearly 1% to trade around 2,950. Shenzhen’s CSI 300 index trades -0.82%. While Hong Kong’s the Hang Seng rebounds +1.25% to 19,129.
(Market News Provided by FXstreet)