Market watch: Asian stocks advance as yen weakens; oil prices edge higher after Opec+ move

File picture (Picture credit score: AP)

Asian markets opened the week on a agency notice on Monday, with Tokyo main features after Japan’s Prime Minister Shigeru Ishiba introduced his resignation, sending the yen decrease and boosting exporters. At the identical time, oil prices edged higher as Opec+ signalled a slower tempo of output will increase.Tokyo’s Nikkei index surged 1.9 %, supported by a weaker yen, which slipped to 148.14 per greenback from 147.07 on Friday. Analysts stated Ishiba’s determination to step down after lower than a 12 months in energy fuelled political uncertainty in Japan, placing stress on the forex and authorities bonds. According to information company AFP, Michael Brown of Pepperstone stated the timing of Ishiba’s announcement was “certainly unexpected” and added that it “introduces significant downside risks for the Japanese yen and for long-end Japanese government bonds.”Other regional markets additionally traded higher, with Hong Kong and Shanghai up 0.3 per cent, Taipei gaining 0.5 per cent and Seoul advancing 0.3 per cent. Singapore and Wellington inched 0.1 % higher, whereas Sydney slipped 0.3 per cent. Investors additionally weighed weak US labour information as it strengthened expectations of a Federal Reserve fee minimize later this month. “Most investors remain aligned on a 25 basis point cut at the September Fed meeting, but a 50bp cut is now in play,” stated Harun Thilak of Validus Risk Management, as cited by Reuters.On the commodities entrance, oil prices recovered a part of final week’s losses after Opec+ agreed to lift output extra modestly from October. As per Reuters, Brent crude rose 0.5 per cent to $65.84 a barrel, whereas West Texas Intermediate climbed 0.5 % to $62.17. Eight Opec+ members will carry manufacturing by 137,000 barrels per day from subsequent month, a slower tempo in contrast with latest months. Toshitaka Tazawa of Fujitomi Securities stated the modest enhance provided “relief” however warned that “downward pressure is likely to persist as Opec+ continues to raise production and supplies ease.”