Asia report: Most markets higher as oil prices surge

Markets in Asia finished mostly higher on Tuesday, with higher oil prices lifting sentiment after Russia and Saudi Arabia confirmed they agreed production cuts should be extended until March 2018.

Japan’s Nikkei 225 was up 0.25% at 19,919.82, paring back some of its gains after trading at the highest levels seen since December 2015 earlier in the day.

The yen was stronger on the greenback, last advancing 0.17% to JPY 113.60 per $1.

On the mainland, the Shanghai Composite was up 0.75% at 3,113.50.

South Korea’s Kospi was ahead 0.2% at 2,295.33, while Hong Kong’s Hang Seng Index lost 0.14% to settle at 25,335.94.

Shares in Cathay Pacific, the largest Hong Kong-based airline, lost 2.97% after reports emerged the company was preparing to shed jobs as soon as Friday.

It had earlier confirmed redundancies were on the cards as competition in the airline industry heated up, but it did not initially give such a short time frame.

On the geopolitical front, investors were once again turning to Trump’s White House, as reports suggested the US President released highly classified information to Russian officials during a meeting last week.

Officials reportedly told the Washington Post the information he divulged was very sensitive, with its release putting a relationship with one of the US’ allies at risk.

The White House roundly denied the report later in the day.

Oil prices leapt ahead after the confirmation of intentions from Saudi Arabia and Russia, with Brent crude last up 0.44% at $52.05 per barrel and West Texas Intermediate improving 0.37% to $49.03.

“An extension of OPEC and Russia's oil production cuts for another nine months should put a floor under the oil price in the mid-$40 range as the market inches gradually towards balance,” noted CMC Markets chief market analyst Ric Spooner.

Australia’s S&P/ASX 200 finished 0.21% firmer at 5,850.52, after the Reserve Bank of Australia released its May meeting minutes early in the day.

The central bank expressed concerns about the employment market, but remained confident that core inflation would improve by next year.

Across the Tasman Sea, the S&P/NZX 50 fell 0.3% to 7,407.61, led lower by Heartland Bank, which was down 2.8%.

The rural-focussed lender had outperformed the wider index so far this year, adding 16% compared to the 7.7% improvement in the Wellington benchmark.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.16% at AUD 1.3511 and the Kiwi retreating 0.19% to NZD 1.4559 per $1.