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Oil sector fall pushes down Asian markets

Falling oil prices have hampered Asian market performance

Markets across Asia demonstrated lacklustre performance during the last full trading session (8 December 2015) in the wake of a concerted loss in value for both US light crude and Brent oil in commodities trading.

A significant downturn in investor outlook was witnessed in the wake of the latest meeting of members of the Organization of the Petroleum Exporting Countries (OPEC), which culminated in a lack of clarification regarding production output in the coming months and the lengths that the group will go to in order to protect market share.

This resulted in a significant drop in value of oil, pushing below the $40 per barrel floor to the market that many analysts had predicted would hold until at least the new year.

In response, markets across Asia - and the rest of the world - have seen considerable losses over recent days, with Tuesday proving another day of widespread falls in Asian trading.

The greatest downturn was seen by China's Shanghai Composite Index, which registered a fall of 1.89% during the day's market session.

Overall, this negative outlook was replicated across the region's major markets, with similar falls seen by the Hong Kong Hang Seng Index (down 1.34%), Japan's Nikkei Stock Average 225 (down 1.04%) and the Australian ASX All Ordinaries Index (down 0.92%).

Looking forward, it is now hoped that a lasting rally in oil values could be seen as the commodity moves away from its current lows, while positive results from this month's meeting of the US Federal Reserve could also come to the aid of Asian market outlook in the coming days, although neither outcome is as yet guaranteed.

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