{"id":50744,"date":"2017-11-06T06:50:13","date_gmt":"2017-11-06T06:50:13","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=50744"},"modified":"2017-11-06T06:50:13","modified_gmt":"2017-11-06T06:50:13","slug":"asia-shares-stumble-from-decade-high-oil-hits-two-year-top-on-saudi-purge","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/asia-shares-stumble-from-decade-high-oil-hits-two-year-top-on-saudi-purge.html","title":{"rendered":"Asia shares stumble from decade high oil hits two-year top on Saudi purge"},"content":{"rendered":"

Asia shares stumble from decade high oil hits two-year top on Saudi purge<\/span><\/strong><\/span><\/h2>\n

Asia shares stumble from decade high oil hits two-year top on Saudi purge: Asian shares stepped away from recent decade highs on Monday while the U.S. dollar staged a broad-based rally and oil jumped to a more than two-year peak as Saudi Arabia\u2019s crown prince cemented his power through an anti-corruption crackdown.<\/span><\/p>\n

Oil prices hit their highest since July 2015 as Mohammed bin Salman\u2019s purge led to arrests of royals, ministers and investors including prominent business billionaire Alwaleed bin Talal. [O\/R]<\/span><\/p>\n

The dollar climbed against the yen to an eight-month peak after a string of U.S. data bolstered views the Federal Reserve will hike interest rates next month and tighten further in 2018. JPY=<\/span><\/p>\n

Near-term sentiment will be directed by news related to U.S. President Donald Trump\u2019s Asian tour this week.<\/span><\/p>\n

In his second day in Japan, Trump ramped up his tough rhetoric against North Korea, saying the United States and its allies are prepared to defend freedom.<\/span><\/p>\n

The U.S. President wants a united front with the leaders of Japan and South Korea before he visits Beijing to make the case to Chinese President Xi Jinping that more needs to be done to rein in Pyongyang. Trump also plans to meet Russian counterpart Vladimir Putin during his 12-day trip.<\/span><\/p>\n

With traders on edge about the outcome of these high-stake meetings, MSCI\u2019s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.7 percent to 552.8 from Friday\u2019s top of 557.9 which was the highest since Nov. 2007.<\/span><\/p>\n

South Korea’s KOSPI .KS11 fell 0.5 percent. Australian shares were off 0.1 percent but stayed within striking distance of a more than two-year peak set on Friday. Hong Kong’s Hang Seng Index .HSI skidded 1 percent.<\/span><\/p>\n

Japan’s Nikkei .N225 was a tad softer too but hovered around a 21-year peak.<\/span><\/p>\n

The losses in Asian shares came despite gains in Wall Street on Friday, with the Dow Jones Industrial Average .DJI up 0.1 percent, the S&P 500 .SPX gaining 0.31 percent and the Nasdaq .IXIC adding 0.74 percent.<\/span><\/p>\n

Investors now awaited progress on U.S. tax reforms which, if passed in its current form, will add $1.5 trillion to the U.S. budget deficit over the next ten years, said Elias Haddad, currency strategist at Commonwealth Bank.<\/span><\/p>\n

\u201cWhile this pro-growth tax package is dollar supportive, it is still unclear if the package will have enough Republican support to pass through Congress by year-end or Q1 2018,\u201d Haddad added.<\/span><\/p>\n

But for now, sentiment towards the greenback was still positive with leveraged funds paring bearish bets to be net long for the first time since late July. Dollar buying was broad-based against all the major currencies. [IMM\/FX]<\/span><\/p>\n

Strong economic data has helped boost the outlook for the greenback.<\/span><\/p>\n

U.S. non-manufacturing purchasing managers\u2019 index rose to its highest since 2005, figures out on Friday showed. New orders for U.S.-made goods gained for the second straight month in September and orders for core capital goods surpassed expectations.<\/span><\/p>\n

The dollar index .DXY held near four-month highs against a basket of currencies, while the euro EUR= trod water to loiter around its lowest since July.<\/span><\/p>\n

In energy markets, Brent futures LCOc1 were up 23 cents at $62.30 a barrel, the highest since July 2015. U.S. crude CLc1 added 17 cents to 55.81.<\/span><\/p>\n

Bin Salman\u2019s reforms include a plan to list parts of giant state-owned oil company Saudi Aramco next year, and a higher oil price is seen as beneficial for the market capitalization of the future listed company.<\/span><\/p>\n

Spot gold XAU= was a touch soft at $1,268.34 an ounce.<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-global-markets\/asia-shares-slip-from-decade-highs-oil-at-two-year-top-on-saudi-purge-idUSKBN1D602W?il=0<\/span><\/p>\n

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