Aust Dollar Soars Past US71c

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The Australian dollar has rallied on the back of a broad greenback selloff triggered by weaker-than-expected US economic data.

At 7.00am (AEDT) on Thursday, the local unit was trading at US71.80c, up from US70.21c on Wednesday.

The currency climbed to a one-month high of US71.88c earlier in the session.

The US service sector expanded in January but at a slower pace than the previous month, causing the greenback to fall against most major currencies.

New York Fed President William Dudley said in an interview that continued tightening of financial conditions would weigh on the decisions of the Fed’s policy board

Thursday will be fairly a quiet day for the Aussie, with traders looking ahead to the Bank of England’s upcoming interest rate decision.

Source: BusinessSpectator

Oil Rises on Dollar Tumble, Ignoring Highest Supplies Since 1930

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Oil rose as the falling dollar countered any concerns in the market over a steep gain in U.S. crude inventories to more than 500 million barrels for the first time since 1930.

Commodities rallied as the Bloomberg Dollar Index, which tracks the currency against major peers, fell as much as 1.9 percent. Oil futures briefly retreated after the Energy Information Administration reported that U.S. crude stockpiles climbed 7.79 million barrels to 502.7 million last week. That was almost twice the 4 million-barrel increase projected by analysts surveyed by Bloomberg.

Oil dropped to a 12-year low in January amid brimming U.S. crude inventories and the outlook for increased exports from Iran after the removal of sanctions. The slump continues to take its toll on oil producers: Exxon Mobil Corp. reduced its drilling budget to a 10-year low, and Chevron Corp. saw its credit rating cut by Standard & Poor’s for the first time in almost three decades.

West Texas Intermediate for March delivery rose $2.40, or 8 percent, to $32.28 a barrel on the New York Mercantile Exchange. It fell 11 percent on Monday and Tuesday, the biggest two-day drop in almost seven years. The volume of all futures traded was 93 percent above the 100-day average at 2:45 p.m.

Brent for April settlement climbed $2.32, or 7.1 percent, to $35.04 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at an $1.18 premium to April WTI.

Source: Bloomberg

Asian Stocks Swing as Rebound in Crude Offsets Declines in Japan

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Asian stocks fluctuated, with Japanese equities erasing gains from the Bank of Japan’s latest stimulus, as a strengthening yen offset a rally in crude oil.

The MSCI Asia Pacific Index rose less than 0.1 percent to 119.87 as of 9:20 a.m. in Tokyo, after falling as much as 0.1 percent earlier. The Standard & Poor’s 500 Index advanced on Wednesday as commodity producers rallied with oil. The yen traded at 118.05 per dollar after strengthening 1.7 percent on Wednesday, the most since August, as weak U.S. services data fueled anxiety America’s economy isn’t immune to weakness elsewhere.

Japan’s Topix index fell 1 percent. The measure dropped below its closing level on Jan. 28, the day before the central bank surprised investors by saying it would adopt negative interest rates.

South Korea’s Kospi index added 0.6 percent. Australia’s S&P/ASX 200 Index climbed 1.1 percent. New Zealand’s benchmark gauge increased 0.1 percent.

Futures on the FTSE China A50 Index added 0.2 percent in most recent trading, while those for Hong Kong’s Hang Seng Index dropped 1.1 percent. The Shanghai Composite Index slipped 0.4 percent on Wednesday, extending this year’s decline to 23 percent. Margin debt in China’s stock market shrunk to the lowest level since December 2014 on Monday, a sign of waning investor confidence after the benchmark gauge’s biggest monthly tumble since 2008.

Source : Bloomberg

Japanese Stocks Slide, Almost Erasing BOJ Gains, After Yen Jumps

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Stocks fell in Tokyo, with the benchmark Topix index close to erasing its gains from the Bank of Japan’s latest stimulus, as exporters declined after the yen jumped against the dollar.

The Topix lost 0.9 percent to 1,394.05 as of 9:10 a.m. in the Japanese capital after tumbling 3.2 percent on Wednesday. The measure briefly dropped below its closing level on Jan. 28, the day before the central bank surprised investors by saying it would adopt negative interest rates. The Nikkei 225 Stock Average slipped 0.6 percent to 17,079.75 on Thursday. The yen traded at 118.04 per dollar after strengthening 1.7 percent on Wednesday, the most since August, as weak U.S. services data fueled anxiety America’s economy isn’t immune to weakness elsewhere.

Source : Bloomberg

Hong Kong stocks fall more than 2 pct; energy, insurance sectors weak

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Hong Kong shares tumbled more than 2 percent on Wednesday led by energy firms as oil prices declined and insurance heavyweights, after Beijing imposed limits on purchases of insurance products in the city by mainlanders using bank cards.

The Hang Seng Index fell 2.3 percent, to 18,991.59, while the China Enterprises Index lost 2.5 percent, to 7,858.31 points.

In its latest move to curb outflows, China was putting a limit on purchases of insurance products in Hong Kong using the country's ubiquitous UnionPay credit and debit cards, two sources told Reuters on Wednesday.

The news hit Hong Kong-listed insurers including index heavyweight AIA.

Source: Reuters