Asia Pacific Markets Mix after Oil Spikes by Russia and Saudi Production Cuts

On Wednesday (6 Sep) morning, Asia Pacific indices was mixed after oil prices spiked by an announcement on extended production cuts by Russia and Saudi Arabia. Meanwhile, many European countries’ PMIs and PPI are published as expected with no significant changes.

Despite there’s no major news on Japan, NIKKEI is the leader of upside today with 0.6% gain, moving up the index and touching 33,240. Singapore’s STI and Malaysia’s KLSE followed the gain with 0.2%, moving their indices up to 3,230 and 1,460, respectively.

On the other hand, Chinese Shenzhen lost the most by over 0.6%, plunging the index down to 10,480.  Hong Kong’s HSI followed along with 0.6% loss, dropping the index to 18,350.


Meanwhile, the Reserve Bank of Australia has decided to stand its interest rate at 4.1% while its Q2 GDP is 2.1% YoY, better than expected of 1.7%. Despite the central bank’s decision, Australian ASX 200 fell by 0.5%, plunging the index to 7,270.

The US Futures indices moved to the downside last night, the S&P 500 and NASDAQ still barely hanging at the important levels of 4,500 and 15,500, respectively.

The US dollar is still strengthening as the DXY continues to move up to 104.6 and weakening its trading pair currencies further. Meanwhile, WTI crude oil spiked to $88 per barrel and Brent also spiked to $91 per barrel after the production news last night, and both are dropping by $1 each in this morning. In addition, gold dropped from $1,960 to $1,950 per Troy ounce.