Asian stocks rallied reaching almost a 10-year high on Monday, as investors’ appetite for risk increased in light of positive macro-economic data. In the currency market, euro snagged a two month high versus the dollar.
.MIAPJ0000PUS rallied in and out of the red zone, finally closing lower at 567.94, still within range of a 10 year high of 570.21 recorded on Thursday.
On Thursday, Asian stocks were pushed up by the rally in Wall Street. Technology stocks boosted Nasdaq and S&P 500 as Amazon (AMZN.O) and other retail companies recorded tidy gains on the shopping season.
Australian stocks rose 0.35 percent while Nikkei .N225 of Japan increased 0.2 percent. KOSPI .KS11 of South Korea slid 0.4 percent.
In the forex market, the euro traded with slight changes closing at $1.1926 EUR= after inching up to $1.1946 earlier, hitting its highest since the 22nd of September.
The currency gained momentum on Friday following the data that revealed German business confidence in November reaching a record high.
The euro’s strong position pushed the dollar’s index lower to 92.789, close to the two month low of 92.675.
U.S. oil prices fell on Monday, pulling back away from two year high on predictions of boosted U.S. output. International markets were moderately better supported by predictions of an OPEC led supply cut extension.
WTI crude futures were at $58.65 per barrel at 0252 GMT, falling 0.5 percent, or 30 cents from their last settlement. LCOc1 Brent crude futures declined 0.2 percent, 13 cents, to $63.73 per barrel.
Since mid 2016, U.S. crude production climbed by 15 percent to 9.66 million barrels a day. Further growth is expected as drilling activity is on the increase.
On Friday, WTI hit a 2015 high closing at $59.05 per barrel, partly due to the suspension of the 590,000 bpd Keystone pipeline which connects U.S. with Canada’s oil sand fields as a result of as a spill.
The OPEC-led oil output cuts expire in March 2018; however, the oil cartel and other producers are scheduled to meet on November 30 to discuss cut extension.