Stock indices of Asia-Pacific region (APR) countries do not show unified dynamics during Monday morning trading.
Investors are estimating the statistical data from Japan and news on additional reduction of oil production by some OPEC+ countries.
As it was reported the night before 8 out of 20 OPEC+ countries announced about a voluntary reduction of oil production from May till the end of the year. According to Interfax calculations, the total reduction of oil production will amount to about 1.657 mln bpd, of which the Russian Federation and Saudi Arabia will account for 500 thousand bpd each.
Oil prices jumped up about 5% on this news. Traders are concerned that this decision may increase inflationary pressures in the world, complicating the task of central banks to return inflation to target levels, writes Trading Economics.
The U.S. authorities have already called the decision inappropriate.
Hong Kong’s Hang Seng indicator lost 0.6%. Prior to that, the index was rising four sessions in a row and ended trading on Friday at a three-week high.
Sino Biopharmaceutical (-8.2%), Wuxi Biologics (-3.9%) and Baidu Inc. (-3.4%) showed the most noticeable drops.
China’s Shanghai Composite stock index gained 0.55%.
Energy stocks were rising after a rebound in oil prices. Cnooc Ltd. gained 4.8%, Petrochina gained 1.7% and Guanghui Energy gained 2.3%. Tech stocks, including East Money Information (9.8%), 360 Security Technology (4.8%) and iFLYTEK (4%) also rose.
Japan’s Nikkei 225 index was up 0.5 percent.
As it became known on Monday, the Tankan index, which assesses the level of confidence in Japan’s economy among large companies in the processing industry, fell to 1 point in January-March from 7 points a quarter earlier.
The value of the indicator was the lowest since the fourth quarter of 2020 and failed to meet the forecasts of experts who expected a drop to 3 points.
The leaders of the decline in the Nikkei Index are shares of energy and financial companies. The price of Inpex Corp shares rose by 5.2%, Eneos Holdings – by 2.4%, Mitsubishi UFJ – by 1.2%, Sumitomo Mitsui – by 1.4%.
South Korea’s Kospi index declined 0.3%.
The market value of one of the world’s largest chip maker Samsung Electronics Co. fell by 1.6% and automaker Hyundai Motor – by 0.5%.
Australia’s S&P/ASX 200 index added 0.5%.
Retail sales in Australia rose 0.2% in February versus January, when the figure jumped 1.8%, final data showed Monday.
The rise in oil prices pushed up shares of Australian oil and gas companies Woodside Energy (5.3%), Santos (4.8%), Beach Energy (7.1%), Karoon Energy (7.9%) and Ampol (2%).
The market value of mining concern BHP Group rose 0.3%, Commonwealth Bank rose 0.6%, and coal producer Whitehaven Coal rose 3.7%.
