Markets: Asian Markets Shows Remarkable Rise as Crude Oil Prices Increased Overnight
Asian markets have begun to see a lift concurrently with the rise of oil prices overnight, starting on Thursday. Except for Japan, all of Asia's stock market indices have shown a positive growth, while the U.S's Wall Street also closed as positive overnight.
The Wall Street Journal reported that Shanghai Composite had a gain at 1.5 percent while Shenzhen market increased by 2 percent. Hong Kong also saw a remarkable rise in indices on Hong Kong's energy companies with a gain of 4.6 percent while the Hang Seng Index go up 1 percent and Hang Seng China Enterprises Index rose 1.5 percent. South Korea's Kospi also climbed 1.4 percent. The positive change was also enjoyed by Australian S&P/ASX 200 which gained 2.1 percent, which also led Australian dollar to rise higher against the U.S dollar on Thursday in the currency market.
Nasdaq reported markets growth throughout Asia and Pacific. Shanghai and Hong Kong led the growth at almost 2 percent, followed by South Korea, while Indonesia and Malaysia gained 1 percent, followed by Singapore and New Zealand.
Japan, however, haven't benefited in the rising of oil prices partly because last Friday the Bank of Japan has announced that it would implement negative interest rates. The move was made as an attempt to keep the economy from prolonged stagnation the nation had faced. Unfortunately, in the wake of its stimulus efforts after the negative interest rates were introduced, traders weren't so sure about the implications of the central bank's decision. Japan's Nikkei 225 was trading down by 0.41 percent, unlike any other markets in Asia that had seen an increase.
On the other hand, most major European markets have fallen on Wednesday. German DAX Index dropped remarkably by 1.5 percent, followed by the U.K's FTSE 100 Index at 1.4 percent and French CAC 40 Index at 1.3 percent.
The markets lift in most Asia has been strongly attributed to the increase in oil prices. The oil prices, which had been declining due to oversupply, was again increased due to speculation that the US Federal Reserve may decide not to increase interest rates throughout 2016 to avoid seeing the dollar rise, as reported by the International Business Times.
Crude oil prices were increased by 8.03 percent for March delivery due to U.S. Federal Reserve's possible decision to not increase interest rates. The rise of oil prices, which had caused many markets to tumble, has now brought back positive impact to most Asian and Pacific markets.