Asia report: Most markets higher after oil price rise

Most markets in Asia finished in the green on Tuesday, with a couple of exceptions, as oil prices returned to the forefront of trader minds amid fresh conflict in Libya.

In Japan, the Nikkei 225 was up 0.19% at 21,802.59, as the yen strengthened 0.16% against the dollar to last trade at JPY 111.30.

Looking at the big three on the Tokyo benchmark, automation specialist Fanuc was up 2.26%, fashion group Fast Retailing added 0.13%, and technology conglomerate SoftBank Group shed 0.41%.

The broader Topix index was also in the red, slipping 0.09% to settle at 1,618.76.

On the mainland, the Shanghai Composite lost 0.16% to close at 3,239.66, and the smaller, technology-heavy Shenzhen Composite rose 0.72% to 1,783.01.

South Korea’s Kospi was ahead 0.13% at 2,213.56, while the Hang Seng Index in Hong Kong was 0.27% higher at 30,157.49.

Internet-focussed technology group Tencent was among the major risers in the special administrative region, finishing the day up 0.89%.

Energy markets were at the top of the agenda early in the session, after crude prices hit fresh highs on Monday, following a resurfacing of conflict in major oil producing nation and OPEC member Libya.

Ray Attrill, head of foreign exchange strategy at National Australia Bank, suggested the jump in oil prices combined had spurred traders into action amid what he called “soporific” global financial markets.

“Fear of fresh supply outages from Libya are said to be responsible [for the price rises], as ‘warlord’ Khalifa Haftar moves his self-styled Libyan National Army forces towards the capital Tripoli, base of the UN recognised government of PM Fayez al-Sarraj,” Attrill noted.

Oil prices were in a mixed state as the region went to bed, however, with Brent crude last down 0.08% at $71.04 per barrel, while West Texas Intermediate was 0.16% higher at $64.50.

In Australia, the S&P/ASX 200 eked out gains of 0.01% to close at 6,221.80, while casino operator Crown Resorts rocketed 19.68%.

That move came after reports that Crown was in discussions with Las Vegas-based gambling giant Wynn Resorts over a possible buyout worth $7.1bn.

Oil stocks were also in the green as prices rose, with Beach Energy up 5.45% and Santos ahead 2.93%.

Across the Tasman Sea, the S&P/NZX 50 was 0.2% lower at 9,787.30, led lower once again by retirement property developer Summerset, which was off 3.8% after it warned on a fall in first-quarter sales last week.

Its sector peers Metlifecare and Ryman Healthcare were also in the red, slipping 3.2% and 2.5% respectively.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.28% at AUD 1.3993, and the Kiwi advancing 0.07% to NZD 1.4822.