Kata Rocks
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Oil bounce supports Asia stocks after ‘Black Monday’

Oil bounce supports Asia stocks after ‘Black Monday’

A sharp bounce in the price of oil Tuesday (Mar 10) provided some support to under-pressure stocks in early Asian trade, a day after global equities suffered their biggest losses in more than a decade.

economicstourismtransportCOVID-19Coronavirus
By AFP

Tuesday 10 March 2020, 11:18AM


‘Black Monday’ wiped billions off stocks around the world. Photo: AFP

‘Black Monday’ wiped billions off stocks around the world. Photo: AFP

World stock markets had capitulated on what has become known as “Black Monday”, with the Dow Jones Index in the US losing more than 2,000 points, and the crash even triggering the emergency break in early trade amid panic selling.

But there was some relief on Tuesday as oil prices jumped around 6% after plunging by a third the previous day, in their worst session since the 1991 Gulf War.

Japan’s main Nikkei index opened three percent lower following the dizzying falls on Wall Street but later pared back losses by more than half.

An hour and a half into trade, the Nikkei stood at 19,622.05 points, a loss of 0.4% compared to the previous day.

The Nikkei was helped by a sell-off in the yen, which is normally heavily bought during times of market uncertainty. A weaker yen is positive for exporters on the Japanese market and usually boosts their share prices.

The market in Seoul was down 0.4% and the ASX in Australia pared losses to around 1% after opening lower by nearly 4%.

In China, where authorities reported the lowest number of fresh coronavirus cases since data started being reported in late January, the benchmark Shanghai Composite Index opened 0.61% higher at 2,961.38 points.

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, opened 0.63% higher, up 11.68 points, at 1,854.34.

CMI - Thailand

Market panic had been driven by uncertainty over the spreading coronavirus but also a spat between Saudi Arabia and Russia over oil production that had battered prices.

Top exporter Saudi Arabia slashed the prices it charges customers following a bust-up with Russia over crude production cuts, starting a price war that sent traders into a tailspin.

Stephen Innes, chief market strategist at AxiCorp, described Monday’s market reaction as the “sum of all fears” and warned the panic had not stopped yet amid “growing evidence that an oil shock of historic proportions is now underway”.

“Severe weakness in energy markets is quickly cascading into broader declines in commodity markets, high-yield credit, and equities,” he said.

The panic on Monday was felt around the world, with the Dax blue-chip index in Frankfurt seeing its sharpest single fall since 2001.

London’s FTSE index closed down more than 7% while in Paris, the CAC-40 index lost over 8%, its worst daily drop since the 2008 financial crisis.

“The markets have passed from panic mode into pure hysteria,” said Ayush Ansal, chief investment officer at trading firm Crimson Black Capital.

“Markets were at breaking point before Saudi Arabia’s decision to launch an oil price war but this latest development has taken them beyond that.”

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

 

Have a news tip-off? Click here

 

Phuket community
French tourists arrested for hookah party in Kamala

Ok Peace, let's not be racist, but we must admit that it is always the same people who are wreak...(Read More)


Immigration issues automatic visa extensions for all visa types

Well now I'm glad I went to immigration and did my 90 day report on April 1st, now that it turns...(Read More)


Chinese tourists questioned for illegal spearfishing in protected area

And now full force of the law on them! Double for the thai guide! Set a impressive example of '...(Read More)


Immigration issues automatic visa extensions for all visa types

How many hundreds needlessly exposed? Should have been done 2 weeks ago. ...(Read More)


Phuket Governor order warns of B20k fine for not wearing mask in public

@goldwing... these are emergency decrees by order of the government in order to prevent the widespre...(Read More)


Mains water supply outage in Rawai and Karon

r...how do arrive at your conclusion that the work is not urgent? As Pascale rightly points out, &qu...(Read More)


Phuket Songkran allowed, but stay in your subdistrict, says Governor

Bloomberg reporting Phuket infection rate at 36 per 100, 000 while Bangkok is at 21. This easing of...(Read More)


Phuket Songkran allowed, but stay in your subdistrict, says Governor

the shut down both the island and kathu is nt true. Please do what you annouced. My girl's relat...(Read More)


TAT issues full summary of COVID-19 restrictions in Phuket

my GF's grandma is still feel free to travel to Hatyai 2 days ago. And come to Wichit from Kathu...(Read More)


French tourists arrested for hookah party in Kamala

They are only French on their ID cards and whenever they want help from our government. They're...(Read More)