Nikkei at a two-month high and Oil rises


Nikkei at a two-month high and Oil rises

Oil prices rose on Monday as Saudi Aramco raised prices more than expected for Asian buyers
The market made this decision in reference to Saudi Arabia’s confidence in the growth of oil demand
according to Bloomberg

Evest follows market developments in the following report



Nikkei closes at a two-month high

Oil rises after Aramco announces oil price hikes

France considers replacing Russian oil with Emirati

Japan continues its stimulus monetary policy





Nikkei closes at a two-month high

Japan’s Nikkei average rose to a two-month closing high on Monday
with energy stocks rebounding as oil prices soared and tech brands recovered
while gains in US and Chinese stock futures also offered support

The Nikkei ended 0.56% higher at 27,915.89
after starting the session down at 27,523.95 after a technology-led sell-off on Wall Street last weekend

The technology sector was the only sector in the Nikkei index to close lower
It stabilized down 0.07% but fell sharply from its morning lows
Chipmaking equipment giant Tokyo Electron turned into a 1.55% gain, while Advantest Corp peers rose by 0.55%

The energy sector was by far the best performing, rising by 3.21%
Idemitsu Kosan and ENEOS rose by 5.41% and 4.76% respectively

Of the 225 stocks that make up the Nikkei index, 130 rose, 86 fell, and nine were flat

The broader Topix index rose by 0.31 percent to 1939.11

US Nasdaq futures rose by 0.75% after the index lost 2.67% on Friday as the strong US jobs report raised concern
about the Fed’s tightening highly aggressive policy
S&P futures pointed to a 0.6% rebound, after a 1.63% decline for the stock index on Friday

artical name Nikkei at a two-month high and Oil rises



Oil rises after Aramco announces oil price hikes

Saudi Aramco announced on June 5 that it will raise the prices of all grades of oil exported in July to countries in Asia
northwest Europe and the Mediterranean
Oil prices exported to the United States will remain at the June level next month

The cost of the light Arab item supplied to Asia will increase by $2.1 per barrel
Thus, it will cost $6.5 per barrel more than the Oman and Dubai oil basket
Experts surveyed by Bloomberg projected an average rise of $1.5 per barrel

Brent crude futures for August rose by $0.89 (0.74%) on the London Futures Exchange
to $120.61 per barrel. On Friday, the futures contract rose by $2.11 (1.8%) to $119.72 per barrel

West Texas Intermediate crude futures for July rose by $0.86 (0.72%)
to $119.73 per barrel in electronic trading on the New York Mercantile Exchange (NYMEX)
During the previous session, West Texas Intermediate crude rose by $2 (1.7%) to $118.87 per barrel

As a result of last week, the price of Brent crude rose by 3.6%, that of West Texas Intermediate – by 3.3%

Beijing authorities announced at the weekend that the situation in the Chinese capital had returned to normal
and most of the coronavirus restrictions would be lifted
In particular, on June 6, public transportation will resume in most areas of the city, allowing people to return to their jobs




France considers replacing Russian oil with Emirati

French Economy and Finance Minister Bruno Le Maire said that Paris is negotiating
with the UAE to ensure that the country is supplied with oil instead of Russia

“We are now in talks with the UAE,” the minister said on Sunday on Europe 1 radio

He noted that France is looking for sources to replace Russian oil
Le Maire noted that the authorities consider also how to replace Russian gas

On 3 June, EU countries approved a plan to phase out most of their oil imports from Russia within six months
as part of the sixth round of sanctions

The EU has decided to ban the purchase, import and transport of crude oil and some petroleum products from Russia
and The oil abandonment process will take six months and the abandonment of petroleum products will take eight months
the Council of the European Union said in a statement

In the meantime, it was emphasized that temporary exemptions were provided for individual EU states



Japan continues its stimulus monetary policy

Bank of Japan President Haruhiko Kuroda has confirmed his willingness to continue applying the current stimulus monetary policy
according to the Wall Street Journal

He told a press conference that the Bank of Japan intends to create conditions for stable inflation in the country’s economy
as the reason for the acceleration in consumer price growth now lies in individual factors, such as rising energy prices

The Bank of Japan is seriously committed to continuing monetary easing that will allow it to create a macroeconomic environment
where wages will rise and the recent inflation outlook will lead to sustained inflation,” Kuroda said

Japanese consumer prices rose by 2.5% year-on-year in April, the fastest pace since October 2014
exceeding 2% for the first time since September 2008
In this regard, there was a market expectation that the Bank of Japan might begin to tighten policy
after the world’s largest central banks to prevent a further weakening of the yen

However, official data showed that Japan’s core inflation – consumer prices excluding food and energy
– was only 0.8% year-on-year in April

In response to reporters’ questions, Kuroda said the central bank maintains a target inflation rate of 2%
He said the gradual weakening of the yen would be a positive factor for the country’s economy

The Bank of Japan maintains the short-term interest rate on commercial bank deposits at 0 .1% annually
and the target yield on 10-year government bonds is close to zero