Asian Markets Trade Higher in Response to Rising Oil Prices and China Relaxing Covid Measures

Stocks in Asia traded mostly higher in the morning session on Monday, supported by rising oil prices and positive sentiment after China relaxed Covid measures.

As of 9:47 BKK time on December 5, 2022, Nikkei rose 0.09%, SSEC gained 1.32% Hang Seng Index jumped 3.29%, ASX200 increased 0.65% while Kospi dropped 0.35%. Thailand’s SET Index closed for the holiday.

Oil prices edged higher after the OPEC+ meeting yesterday agreed to keep policy output  steady throughout 2023, in the course of its earlier decision to cut 2 million barrels of output per day. The International benchmark Brent crude rose $1.39 or 1.62% to $86.96 a barrel, while West Texas Intermediate increased $1.35 or 1.69% to $81.33 per barrel.

Late last week, China announced that it was set to ease Covid-19 quarantine protocols on the severity of Covid-19 restrictions despite its daily case toll hovers near record highs. The relaxation came after protests in many cities, including major ones such as Shanghai, Beijing and Guangzhou against stringent Cove restrictions under Xi Jinping’s zero-covid policy for nearly three years.