Drop in Oil Prices Is Not Good For The Asian Markets
The continuous increase in the value of the US dollar has created a lot of pressure on the Asian markets. Adding to this, the oil prices also fell on Thursday, causing the Asian markets to go down further.
Nikkie was down by 0.15% even though it recovered from an earlier loss of 0.4%. The benchmark index of Japan, however, enjoyed five gains continuously and it was up by 10% since November 9th. The Chinese markets also responded badly to the lowering of oil prices. The Shanghai was down by 0.31% while Shenzhen composite reduced by 0.561%. The Kospi also lost 0.12%. The national college entrance examinations resulted in a one hour delay for the South Korean benchmark index. Hong Kong too reflected loss when Hang Seng lost 0.05%.
Even though Australia suffered an initial loss of 0.3%, it recovered pretty quickly and it has gone up by 0.15%. The benchmark index, however, experienced one of the biggest losses as it went down by 1.59%. The financials sub-index also went low by 0.36%.
The oil companies of Australia also suffered a major blow as the share prices reduced. Santos lost 2.96% and Woodside Petroleum also went through a losing streak losing 2.18%. the Oil Search was also down by 1.03%.
The US futures crude reduced to $45.48 per barrel losing 0.2% and Brent futures went down to $46.54 per barrel. The crude inventory has climbed by 5.3 million barrels compared to last week and this increase in reserves has resulted in a price drop.
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