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Asian stocks trail Wall Street higher as oil prices rise


Asian stocks generally trailed Wall Street higher on hopes of economic resilience in the US, while oil futures rose after Saudi Arabia announced production cuts in a bid to support crude oil prices.

Japan’s benchmark Topix stock index rose 1.3 percent, Australia’s S&P/ASX rose 1.1 percent and Hong Kong’s Hang Seng gained 0.7 percent on Monday.

Gains for Asia-Pacific stocks came after a rally on Wall Street on Friday, with the S&P 500 up 1.5 percent and the tech-focused Nasdaq Composite up 1.1 percent after US jobs data showed the number of new jobs hiring in May increased more than expected.

In commodity markets, crude oil spiked shortly after Saudi Arabia said it would cut oil production by 1 million barrels a day in a bid to drive prices higher. The kingdom’s energy minister said the cuts would initially be for July, but could be extended.

Brent crude, the international benchmark, rose as much as 3.6 percent before earnings rose about 1 percent to $76.96 a barrel. West Texas Intermediate, the US marker, rose as much as 4.6 percent before pulling back to jump 1.2 percent to $72.57.

Chinese stocks bucked the broader market trend, with the CSI 300 index of Shanghai and Shenzhen-listed stocks falling 0.3 percent after closing 1.4 percent higher on Friday.

The losses for Chinese stocks came despite a positive economic reading from the Caixin services purchasing managers index, which signaled sharper growth for the country’s services sector in May.

Official media in China also called on investors to have confidence in the country’s domestic stock market, with the state-run Economic Daily suggesting that “clear understanding, unwavering faith, determination and patience” were the “key responsibilities of all market participants” . .

Futures markets gave US stocks a slight drop as they opened on Wall Street later in the day, with the S&P 500 expected to lose 0.1 percent. The FTSE 100 was expected to rise 0.1 percent.

Merry C. Vega is a highly respected and accomplished news author. She began her career as a journalist, covering local news for a small-town newspaper. She quickly gained a reputation for her thorough reporting and ability to uncover the truth.

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