Asian shares near six-week high on oil, Fed expectations

© Reuters. Business owner is shown in an electronic board displaying Japan’s Nikkei share typical outside a brokerage in Tokyo

By Hideyuki Sano TOKYO (Reuters) – Asian shares held near six-week highs on Wednesday, on a brightening outlook in the energy sector and hopes that the United States Federal Reserve will not raise rate of interest in the coming months after a disappointingly weak U.S. jobs report. MSCI’s broadest index of Asia-Pacific shares outside Japan () was flat after hitting a near six-week high the previous day. Japan’s Nikkei () was also flat. On Wall Street, the United States S&P 500 Index () increased 0.1 percent to 2,112, less than 20 points away from its record closing high significant in May in 2014. The gains were led by 2.1 percent gains in energy shares () as oil prices leapt more than 1 percent to strike 2016 highs on expectations of domestic stockpile draws and frets about supply shortages from attacks on Nigeria’s oil industry. A report by trade group American Petroleum Institute (API), released after Tuesday’s close revealed an unrefined draw of 3.6 million barrels, larger than expectations of 2.7 million barrels, supporting the market. U.S. crude futures () last traded at $50.39 per barrel, near its Tuesday high of $50.53, a level last seen in October. Worldwide benchmark Brent futures () also hit an eight-month high of $51.54 per barrel and last stood at $51.47. Financiers even more cut expectations of Fed rate hikes as they assessed Friday’s employment report that revealed new hires dramatically dropped in May. Information published on Tuesday confirmed U.S. nonfarm performance fell in the first quarter on a surge in labor-related expenses, suggesting business might have had to slow working with after their hiring previously in 2012 exceeded their revenue development. “Output is not increasing as much as a boost in work, thus we have a fall in performance. If work stops increasing and we still have no development in performance, that would be a stressing indication,” said Shuji Shirota, head of macroeconomic method at HSBC Securities. The 10-year U.S. Treasuries yield fell back to 1.713 percent (), screening strong support at around 1.70 percent. In Europe, German bond yields meeting a record low of 0.045 percent on Tuesday as financiers sought a safe haven ahead of Britain’s referendum on EU subscription. The British pound was off Monday’s three-week low however continued to be unpredictable. It traded at $1.4541, compared to Monday’s low of $1.4352. The dollar likewise licked its injuries near four-week lows after the task data quashed expectations of a Fed rate trek in the next few months. The () stood at 93.862, simply above Monday’s low of 93.745 and around 1.8 percent below its levels right before the payrolls information. The euro changed hands at $1.1358 while the yen stood at 107.28 per dollar. In Asia, Chinese trade data due later on Wednesday is the next big focus for markets. Disclaimer: Combination Media wish to remind you that the information consisted of in this site is not necessarily real-time nor precise. All CFDs (stocks, indexes, futures) and Forex costs are not provided by exchanges but rather by market makers, therefore prices may not be accurate and might vary from the actual market value, implying rates are indicative and not appropriate for trading purposes. For that reason Combination Media does n`t bear any duty for any trading losses you may sustain as a result of utilizing this information. Combination Media or anybody included with Fusion Media will not accept any liability for loss or damage as an outcome of reliance on the info including data, quotes, charts and buy/sell signals contained within this website. Please be completely notified regarding the risks and expenses related to trading the financial markets, it is one of the riskiest investment types possible.

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