Asian Markets mixed on week end

Asian Markets mixed on week end

Following recovery on Wall Street, with S&P 500 closing higher by 0.37 percent and NASDAQ up by 0.73 percent, Asian session was rather calm.

The Nikkei 225 reversed earlier losses and raised above the flat line, now up by 0.36 percent. Shanghai Composite inched lover by 0.11 percent. Australia’s benchmark ASX 200 Index fell be 0.19 percent where major Australian financials trader lower across the board, with ANZ down by 1.93 percent, Westpac closed lower by 1.16 percent.

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 Nikkei 225 recovered on positive US session overnight. Now trades up by 0.36 percent. source: Bloomberg

Today investors are likely to watch how events in Brazil are unfolding. As we informed yesterday, Brazil stocks plunged 10 percent on bribery scandal. Presidend Michel Temer was accused of paying substantial amounts of money imprisoned former senate collegue in a large scale corruption probe.

Investigation implicates former and current politicians and has led to imprisonment of Brazil’s most prominent business owners and politicians. The corruption probe started with the arrest of an executive at Petrobras, national oil company three years ago. 

Brazil is in its worst recession in history, mainly because of the scandal.

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 USDBRL now trades at the levels not seen in last six months, jumping violently when the scandal emerged. source: xStation5

In energy sector, oil prices rose after some producer countries indicated they would extend output cuts. Benchmark Brent crude gained 0.59 percent to trade at $52.82 a barrel while US crude oil added 0.73 percent to trade at $49.71.

The key OPEC meeting is coming quickly, as countries will decide on 25 May to extended oil cuts that have been implemented in the first half of this year. Algeria, a country that was vocal and helped craft a deal last year said it was optimistic this time as well.

 

 

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