HONG KONG: Stocks mostly rose on Wednesday (Sep 30) following a plunge in oil prices the previous day, while investors prepared for the release of crucial US inflation data later in the day.
Both main crude contracts tumbled on Tuesday on lingering hopes for an eventual deal to end the US-Iran war that will reopen the Strait of Hormuz, even though talks remain at a standstill and both sides have provided mixed messaging.
News that Saudi Arabia had restored about half the capacity of its East-West pipeline – after it was closed this month following drone attacks – also provided a healthy boost, while the Trump administration also ordered the release of more oil from US emergency reserves.
The Saudi East-West pipeline had been a key alternative route for oil shipments from the kingdom while Hormuz was choked off.
Brent shed more than 2 per cent and West Texas Intermediate more than 3 per cent to fall below US$90 a barrel.
They both edged back up on Wednesday but pared earlier gains.
Tokyo, Hong Kong, Shanghai, Sydney, Wellington, Taipei, Mumbai and Jakarta were all up, although Seoul, Singapore, Manila and Bangkok dipped.
London rose at the open as data showed the UK economy grew more than initially estimated in the second quarter. Paris and Frankfurt were also slightly higher.
Shanghai and Hong Kong were given a little support from news of a fresh stimulus package out of China, as well as data showing the country’s factory activity grew this month for the first time since June.
The spike in crude prices has ramped up inflation worries and put pressure on central banks to hike interest rates.
That has seen US 30-year Treasury yields top 5.6 per cent to a 24-year high, while the benchmark 10-year yield stood above 5.2 per cent and their highest since 2007.