On Thursday, Asia-Pacific markets grew along with oil prices, that received a powerful boost from the greenback’s decline overnight.
Weaker-than-expected American service-sector data pushed the evergreen buck to its lowest value against a basket of key currencies for three months, thus sparking gains for commodities that extended into Asian trading hours.
Chinese markets surged, with the smaller Shenzhen market 2% and the Shanghai Composite Index gaining 1.5%. As for Chinese stocks, they managed to soar on speculation that the Fed might increase interest rates twice a year. Furthermore, previous market expectations also contributed into this surge, as an analyst of Guodu Securities in Beijing, Xiao Shijun states.
Meanwhile, in Hong Kong the Hang Seng Index gained 1.4% and the Hang Seng China Enterprises Index, composed of mainland Chinese companies with listings in the city, acquired 1.9%. Additionally, a gauge of Hong Kong-listed energy companies grew 5.1%.
Japan’s Nikkei 225 boasted -1.5% being inspired by the loss of strength in the Japanese yen. The major Japanese currency stuck to 118.12 against the greenback, while the Nikkei 225 surged 0.9%.
Oil prices remained volatile during morning Asia trade. Brent crude oil grew to $35.66, while WTI crude climbed to $32.85.