Asian exchanges are recovering and US crude is at a 7-year high

Asian exchanges US crude US stock market

Asian exchanges are recovering and US crude is at a 7-year high

Asian exchanges are recovering and US crude is at a 7-year high :A new trading week begins today, apparently positive,
as exchanges in Asia are beginning to show positive signs.

In addition to the oil that set new records.

Evest follows economic events closely and relays them in the following report.


Positive dynamics in Asia 

Nikkei continues to rise for the third session in a row

Anticipation of Wall Street session after Friday’s losses

Lenovo refuses to list call deposit receipts on the Shanghai Stock Exchange

US crude is at a 7-year high



Positive dynamics in Asia 

Stock indices in Asia and the Pacific show positive dynamics on Monday. 

Most Asian stocks rose on Monday despite continuing concerns about the region’s energy crisis and coronavirus infection.

Stocks in Japan and China rose, while South Korean markets were closed due to a national holiday.

Stocks declined in Australia.

Japan’s Nikkei 225 rose by 1.45%, and China’s CSI300 by 0.47%.

In the meantime, Meanwhile, the US S&P 500 index’s futures were fell by 0.25%.

The Australian S & P/ASX 200 index fell by 0.3% to 7299.80. Hong Kong’s Hang Seng index rose 1.8% to 25296.08.

Markets in South Korea have been closed because of a national holiday.

Nikkei continues to rise for the third session in a row

Japan’s Nikkei index ended trading with a remarkable 1.6% rise to 28498.20 points.

The Nikkei 225 index recorded the highest level at 28581.36 points and lowest at 27893.32 points.

The trading range for the Nikkei 225 between the highest and lowest levels of the day is 2.41%.

In the last seven days, the Nikkei 225 index maintained a rise of 0.19%, so it continued for a year to maintain a rise of 22.92%. 

The Nikkei 225 index is 7.08% lower than this year’s maximum (30،670.10 points) and 5.5% higher than the minimum rating so far this year (27،013.25 points).

Japan’s new Prime Minister, Fumio Kishida, calmed concerns in Japan by retracting comments that he favored raising taxes on capital gains and profits.

The possibility of such an increase raised investors’ concerns after he took office a week ago.

Reviving the world’s third-largest economy remains a task for Kishida, but it is widely seen as the choice of the old guard of the ruling Liberal Democratic Party,
which has dominated politics since World War II. 

Some critics argue that change is necessary if the nation hopes to remain competitive, especially when the pandemic has created new kinds of problems,
ranging from shifts in working methods to shortages of supply.

The rally may be short-lived as there are still other concerns.

Like Europe, Asia is experiencing fuel shortages that could hamper recovery from the pandemic.


Anticipation of Wall Street session after Friday’s losses

The US stock market fell on Friday after weak data on the country’s labor market.

The number of jobs in the US economy increased in September by about 194 thousand, the lowest since the beginning of the year, according to Labor Department data. 

Unemployment fell to its lowest level since March 2020 at 4.8%, up from 5.2% in August.

Experts expected an average increase in the number of jobs last month of 500 thousand and a decrease in unemployment by an average of 5.1%.

The Federal Reserve has previously stated that labor market recovery is a key variable that will shape future monetary policy.

Therefore, investors are watching closely the data on job growth in the country.

The end of federal unemployment benefits, which were provided in support of the population during the Covid-19 pandemic, and the reopening of schools,

has brought some workers back to the labor market, but the spread of the delta strain and persistent personnel shortages continue to support improvements in the labor market, experts say.

Slow job growth suggests that the economic recovery is erratic.

This reinforces expectations that the Federal Reserve may maintain the stimulus measures for a longer period than expected. 

However, there are some analysts who do not believe that the latest data from the labor market has changed the situation significantly.

Lenovo refuses to list call deposit receipts on the Shanghai Stock Exchange

Lenovo Group Limited, the world’s largest manufacturer of personal computers,
announced that it had refused to list call deposit receipts (CDR) on the Shanghai Stock Exchange due to market conditions.

The press release did not specify what those conditions were.

The company expects that its financial position will not be affected by the withdrawal of demand.

In early October, Lenovo, already listed on stock exchanges in Hong Kong and New York,
announced that the Shanghai Stock Exchange had accepted the company’s application for CDR in the Agency for Science, Technology and Research, known as STAR.

The company planned to offer no more than 10% of all stocks and raise the result of the offering up to $13.6 billion in Hong Kong ($1.8 billion).

Lenovo can use borrowed funds to research and develop new technologies and products and increase working capital.

The company’s stock traded in Hong Kong at 13.9% on Monday below Friday’s closing price.

Over the past month, the company’s market capitalization has fallen 4.1% to HK $106.1 billion.


US crude is at a 7-year high

Oil prices are rising steadily during trading on Monday, reaching their highest level in several years.

The cost of Brent crude futures for December on the London Stock Exchange ICE Futures on Monday is $83.73 per barrel, $1.34 (1.63%) higher than the closing price of the previous session.

The price is at a 3-year high As a result of Friday’s trading, these futures rose $0.44 (0.5%) – to $82.39 per barrel.

The price of West Texas Intermediate crude futures for November in electronic trading on the New York Mercantile Exchange (NMX) is $80.94 per barrel, $1.59 (2%) higher than the final value of the previous session.

The prices are at a 7-year high. 

As a result of prior trading, the value of these futures increased by $1.05 (1.3%) – to $79.35 per barrel.

Over the past week, the price of West Texas Intermediate crude jumped by more than 5%,
indicating growth for the seventh week in a row, which was the longest recovery period since December 2013.

The price of Brent crude has grown over the past five weeks.

Higher prices are facilitated by the continued active demand for fuel under a limited supply.

The U.S. Department of Energy said last week that it had no plans to sell oil from the strategic reserve yet.

US have used their strategic reserves from time to time, usually after hurricanes or other supply disruptions.