Oil Falls to 6-Year Low as Dollar Weakens; China Shares Rally

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Oil touched its lowest level since 2009 amid increased projections for U.S. production, while the dollar weakened from strongest level in more than a decade before this week’s Federal Reserve meeting. Chinese shares rose as the government vowed to support economic expansion.

West Texas Intermediate crude dropped 1.1 percent to $44.35 a barrel by 3:20 p.m. in Tokyo, after earlier falling to as low as $43.57. The Bloomberg Dollar Spot Index declined 0.3 percent as the euro rebounded from a 12-year low. The Shanghai Composite Index advanced 1.9 percent after China’s Premier Li Keqiang pledged to take action if slowing growth threatens job creation or wages. Standard & Poor’s 500 Index futures were little changed.

U.S. oil dropped 9.6 percent last week and speculators cut bullish wagers to the lowest in more than two years as falling rig counts fail to cool a supply glut. The Fed may remove the word “patient” from its statement this week, giving it more flexibility on the timing of interest-rate increases as U.S. monetary policy diverges from efforts by European and Asia-Pacific policy makers to shore up growth.

Source : Bloomberg

Aust dollar weakens, nears US76c

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The Australian dollar is weaker as a decline in American consumer confidence fails to stop the greenback from rising against the euro.

At 7am (AEDT), the local currency was trading at US76.21c, down from US76.75c on Friday.

The Australian unit slipped during offshore trade as the US dollar rose against the euro.

This occurred even though the University of Michigan's preliminary reading for March showed a decline in consumer confidence.

Normally, poor US economic data would dent the greenback, but the US dollar rose as the first week of the European Central Bank's €1.1 trillion ($A1.52 trillion) bond buying program hurt the euro, Westpac senior market strategist Imre Speizer said.

It comes as the US Federal Reserve prepares to hold a two-day policy meeting this week.

The US dollar could fall on Thursday morning, Australian time, if the accompanying statement removed the word "patience", in regards to the timing of a possible US interest rate rise, without giving specifics on when the next increase could occur.

Source : Business Spectator

Hong Kong Stocks Up 0.49% at Break

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Hong Kong stocks ended the morning session 0.49 percent higher, while Shanghai rallied Monday after Chinese Premier Li Keqiang said the government would provide support if the economy continues to underperform.

The benchmark Hang Seng Index added 117.54 points to 23,940.75 by lunch on turnover of HK$37.89 billion ($4.89 billion).

And the benchmark Shanghai Composite Index jumped 1.82 percent, or 61.40 points, to 3,434.31.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 2.42 percent, or 41.34 points, to 1,749.42.

Source : AFP

Japan Stocks Swing as Investors Await The Fed for U.S. Rate Signal

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Japanese stocks swung between gains and losses as investors await a Federal Reserve meeting this week for an indication of when U.S. interest rates will be raised.

The Topix was little changed at 1,560.17 at the trading break in Tokyo, after falling 0.2 percent and rising 0.3 percent. Volume was about 14 percent the 30-day intraday average. The gauge ended last week at its highest close since December 2007. The Nikkei 225 rose 0.2 percent to 19,291.95, after closing above 19,000 on Friday for the first time in almost 15 years. The yen climbed 0.1 percent to 121.32 per dollar following last week’s 0.5 percent drop, its fourth straight weekly decline.

Source : Bloomberg

Chinese Stock-Index Futures Advance after Last Week’s Increase

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China’s stock-index futures rose after the Shanghai benchmark gauge had its biggest weekly gain in a month.

Futures on the CSI 300 Index expiring in March added 0.4 percent to 3,631 as of 9:17 a.m. local time. PetroChina Co. and energy companies may be active after crude prices in New York dropped to their lowest level in six years.

The Shanghai Composite Index climbed 0.7 percent to 3,372.91 on Friday, taking last week’s increase to 4.1 percent. Premier Li Keqiang pledged Sunday to protect job creation in China as the leadership presses ahead with a “painful” push to cut corruption and waste by reducing the role of the state.

The CSI 300 Index added 0.7 percent. Hong Kong’s Hang Seng China Enterprises Index advanced 1.3 percent and the Hang Seng Index gained 0.1 percent. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, slid 0.9 percent in New York on Friday.

Policy makers will take action if China’s growth, which the government targeted at about 7 percent this year, drifts toward the lower limit of its range and cuts into employment or wages, Li told reporters. While stripping the government of some of its role in the world’s second-largest economy may face resistance from vested interests, it is crucial, he said.

Source : Bloomberg