Home » Asian Stocks Fall as Oil Rises Amid Supply Shortage Fears

Asian Stocks Fall as Oil Rises Amid Supply Shortage Fears

by Carl Steward
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OilAsian Stocks Fall as Oil Rises Amid Supply Shortage Fears

Tuesday morning saw a majority of declines in Asia-Pacific markets after losses on Wall Street and an increase in oil prices due to supply concerns.

By 10:31 PM ET, the Nikkei 225 index of Japan was up 0.16 percent (0231 GMT). KOSPI for South Korea decreased by 0.30 percent. The ASX 200 in Australia increased by 0.23 percent. The Hang Seng in Hong Kong fell by 1.01 percent.

Shenzhen Component was down 0.38 percent, and Shanghai Composite was down 0.49 percent in China. Governor of the People’s Bank of China Yi Gang promised to continue the accommodative monetary policy to accelerate the recovery from the COVID-19 disruption. The tech-heavy Nasdaq 100 sank 0.81 percent, while the S&P 500 fell 0.30 percent. The yield on U.S. Treasuries was at 3.19 percent.

Will the Supply Shortage Continue?

As supply remained constrained due to losing Russian supplies and restrictions on Russian oil exports, crude prices increased beyond $110 per barrel. Libya and Ecuador warned of probable output reductions due to political turmoil, adding to the supply concerns.

The leaders of the Group of Seven (G7) will discuss ways to combat increasing energy prices. While minimizing the harm to economies, they are considering putting a price restriction on Russian crude and oil product exports. According to Common Wealth Bank of Australia experts, reports of constrained supplies boosted the oil market. Political upheaval may limit supplies from Libya and Ecuador, two secondary producers. The G7’s planned price ceiling on Russian oil is another factor.

Earnings revisions are a danger given that the U.S. economy should contract next year. However, China’s relaxation of COVID restrictions may serve as a buffer for the global economy.

Speaking at the ECB event on Wednesday are President of the European Central Bank (ECB) Christine Lagarde, Chairman of the U.S. Federal Reserve Jerome Powell, Governor of the Bank of England Andrew Bailey, and President of the Cleveland Federal Reserve Loretta Mester. China’s purchasing managers index is coming on Thursday for the Asia-Pacific region.

The post Asian Stocks Fall as Oil Rises Amid Supply Shortage Fears appeared first on forexinsider24.com.

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