Fundamental analysis from New Forex: The Asia-Pacific region

Fundamental analysis from New Forex: The Asia-Pacific region

Posted on May 22, 2017, 11:47 AM

The Asian markets grew against the background of the prospects reducing supply of crude oil thanks to what Brent benchmark grew to $51 for barrel. The Minister of Energy of Saudi Arabia declared that all producers participating in the program for production restriction agreed to extend reducing for nine months. The Japanese currency weakened because of the growing appetites to risk meanwhile, and the South Korean won grew even after North Korea carried out one more testing of the ballistic missile on Sunday. In general the global stock indexes are close to record maxima as investors expect that global growth will be able to resist to political shocks in the USA and Brazil. Topix in Tokyo added 0.5%, having lost 1.3% last week. Shares in Australia increased by 0.8%, and South Korean shares increased by 0.6%. At the same time Hang Seng in Hong Kong added more than 1%, having closed at the highest level since July, 2015, and the Index of the Chinese shares traded in Hong Kong extended for 1.1%. SSE Composite, however, fell in price by 0.7%. On Wall Street futures for S&P 500 added 0.1%, following the main index which grew by 0.7% on Friday. Friday growth on Wall Street as considers most of economists, was provided with bear prospects of US dollar which became stronger because of a sharpening of political instability in Washington. The index of the American dollar increased by 0.1%, having jumped aside against the background of the strongest weekly decrease since July. The Japanese yen lost 0.2% to 111.48 against the greenback having become stronger for the whole 2% last week. The Australian dollar also weakened for 0.2% to ¢74.42 of the USA. The won in South Korea was closed with a surplus in 0.9% and almost completely offset losses of the previous three sessions. Today investors expect the publication of official economic forecasts for an interest rate in Brazil, and also a performance of officials of U.S. Fed Patrick Harker and Neel Kashkari. Protocols of a meeting of representatives of FRS for May 3 will be published on Wednesday, and the final rate on the subsequent reducing oil production, as expected, will be officially approved by members of OPEC on Thursday.

NewForex Analyst

Alex Vergunov

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