Home / Business / Asian shares up, oil down as Syria fallout seen limited

Asian shares up, oil down as Syria fallout seen limited

SYDNEY – Share markets started firmer in Asia on Monday amid relief US-led strikes on Syria looked like being a one-off event that avoided a direct confrontation with Russia, weighing on oil prices and safe-haven Treasuries.

EMini futures for the S&P 500 sprang 0.6 percent higher in early trade, while Japan’s Nikkei added 0.3 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent.

The United States, France and Britain launched 105 missiles targeting what the Pentagon said were 3 chemical weapons facilities in Syria in retaliation for a suspected poison gas attack in Douma on April 7.

Russian President Vladimir Putin warned on Sunday that further Western attacks on Syria would bring chaos to world affairs, as Washington prepared to increase pressure on Russia with new economic sanctions.

But with President Donald Trump declaring mission accomplished, investors wagered the worst had been avoided.

“Trump was able to enforce his chemical weapons red line without crossing the threshold for Russian retaliation,” said analysts at JPMorgan in a note.

“Stocks were concerned about a prolonged and expanded US campaign towards Assad and that doesn’t look probable.”

Safe-haven assets eased in response, with yields on US 10-year Treasury debt up two basis points at 2.84 percent.

The dollar inched up 0.2 percent on the yen to 107.53 yen , and away from last week’s low around 106.62.

The euro was flat at $ 1.2330, while the dollar index was a fraction firmer at 89.803.

In commodity markets, gold dipped 0.1 percent to $ 1,343.70 an ounce, and remained well short of last week’s peak at $ 1,365.23.

Oil prices slipped with Brent crude futures off 31 cents at $ 72.27 a barrel, while US crude fell 26 cents to $ 67.13 a barrel.

Looking ahead, the US earnings season kicks into high gear this week with Thomson Reuters data predicting profits at S&P 500 companies increased by 18.6 percent in the first quarter from a year ago, their biggest rise in seven years.

Yet with expectations so high, bank shares ran into profit-taking on Friday after a batch of mixed results.

In Asia, China reports its gross domestic product for the first quarter on Tuesday with market forecasts clustered around growth of 6.7 percent to 6.8 percent.

The US reports retail sales later Monday and there are around 15 Federal Reserve speakers in the diary for the week.

Also this week, the IMF will hold its annual Spring meetings of central bankers and finance ministers in Washington.

Let’s block ads! (Why?)

Business

About

Leave a Reply

Your email address will not be published. Required fields are marked *

*