Oil Extends Advance Above $36 as U.S. Explorers Idle More Rigs

---

Oil extended gains above $36 a barrel as U.S. drillers cut the number of active rigs to the lowest in more than six years amid a global glut.

Futures advanced as much as 1.6 percent in New York and oil in London extended its longest run of gains since November. Rigs targeting oil fell by 8 to 392, the smallest level since December 2009, according to Baker Hughes Inc. That is the 11th week of declines. Hedge funds unwound bearish bets at the fastest pace in 10 months, according to U.S. Commodity Futures Trading Commission data, as the prospect of prices sinking to $20 a barrel faded.

Oil on Friday capped the longest run of weekly gains since May as U.S. crude output fell to the lowest since November 2014, even as rising stockpiles kept supplies at the most in more than eight decades. A meeting among major producers to discuss freezing output may be held in Russia, Doha or Vienna during the March 20 to April 1 period, Russian Energy Minister Alexander Novak said on state television Rossiya 24. There is no final decision on timing yet, Novak said.

West Texas Intermediate for April delivery rose as much as 57 cents to $36.49 a barrel on the New York Mercantile Exchange and was at $36.40 at 9:49 a.m. Hong Kong time. The contract climbed $1.35 to $35.92 on Friday, the highest close since Jan. 5. Total volume traded was about 15 percent above the 100-day average. Prices posted a third weekly gain on Friday.

Brent for May settlement increased as much as 56 cents, or 1.5 percent, to $39.28 a barrel on the London-based ICE Futures Europe exchange. The contract rose 10 percent last week. The global benchmark crude was at a premium of 97 cents to WTI for May.

Source: Bloomberg

Aussie Surge to July High Defies Forecasts; Traders Alert to RBA

---

The Australian dollar’s climb over the past month has defied forecasts, taking it to the top of the leaderboard as rising commodity prices, falling volatility and a central bank on the sidelines drive demand.

Only one of more than 50 forecasters are predicting the Aussie will strengthen in the second quarter after it climbed against all major peers since early February to reach a seven-month high on Friday. The currency retreated Monday after China’s expanded deficit target disappointed some in the market expecting a more aggressive stimulus signal from Australia’s largest trading partner, National Australia Bank Ltd. said. Traders will watch for comments from Reserve Bank of Australia Deputy Governor Philip Lowe Tuesday for signs the currency’s strength is beginning to trouble policy makers.

The Aussie was at 74.09 cents as of 9:15 a.m. in Tokyo, down 0.4 percent from Friday, when it touched 74.43, the most since July. It has gained 4.8 percent in the past month. The currency will weaken to 69 cents by June 30, according to the median of estimates compiled by Bloomberg.

RBA board member John Edwards last month told the Wall Street Journal that the Aussie was too strong and he would be more comfortable with a level around 65 cents. He added that he wasn’t confident a drop to that level would occur, according to the report.

Source: Bloomberg

China stocks rise on policy cues from parliament meeting, hang seng climbs

---

China stocks climbed in early trading on Monday, extending strong gains over the past four sessions, as investors reacted positively to statements from top Chinese leaders at the annual parliament session over the weekend.

Hong Kong shares also had a positive start to the week, aided by an upbeat mood in the region, following Friday gains in U.S. and European markets, and continued rebound in oil and commodity prices.

The CSI300 index rose 0.6 percent to 3,113.50 points at 2:05 GMT, while the Shanghai Composite Index gained 0.7 percent to 2,895.25 points.

The Hang Seng index in Hong Kong was up 0.3 percent, to 20,239.77 points.

China's top economic planner said on Sunday that the country's economy was not headed for a hard landing and was not dragging on the global economy, but uncertainty and instability in the global economy did pose a risk to growth.

Beijing has set a growth target of 6.5 percent to 7 percent for this year, and aims to run a fiscal deficit equivalent to 3 percent of GDP, up from the previous year's target of 2.3 percent.

China's start-up board ChiNext jumped over 3 percent in early trading, recovering much of Friday's sharp losses, after Beijing laid out its vision over the weekend to become a tech power over the next five years.

Source: reuters

Asian Stocks Swing as Investors Weigh China Goal, U.S. Jobs Data

---

Asian stocks fluctuated, following the biggest three-week advance since 2009, as investors weighed China’s move to cut its economic growth target and a surge in U.S. hiring that boosted optimism in the outlook for the world’s largest economy.

The MSCI Asia Pacific Index was little changed at 126.31 as of 9:07 a.m. in Tokyo, after swinging between a gain of 0.3 percent and a loss of less than 0.1 percent. U.S. equities rose on Friday as investors shook off data showing a decline in wages to focus on a surge in hiring that bolstered optimism the economy can weather a global slowdown.

Japan’s Topix index lost 0.7 percent. South Korea’s Kospi index gained 0.4 percent. Australia’s S&P/ASX 200 Index jumped 0.9 percent, while New Zealand’s S&P/NZX 50 Index slipped 0.1 percent. Markets in China and Hong Kong have yet to start trading.

Futures on the Standard & Poor’s 500 Index slipped 0.2 percent. The underlying benchmark index for U.S. equities gained 0.3 percent on Friday, led by resources stocks.

Source: Bloomberg

Japanese Stocks Fall After U.S. Payrolls, China Growth Target

---

Japanese shares fell, after the Topix index capped its best three weeks since 2014, as investors weighed a surge in U.S. hiring that came with negative wage growth and China set a weaker growth target for this year.

The Topix lost 0.4 percent to 1,371.82 as of 9:01 a.m. in Tokyo, with about eight shares rising for each that fell. The Nikkei 225 Stock Average slipped 0.4 percent to 16,947.68. Friday’s U.S. jobs report showed employers added 242,000 workers in February, more than projected, though wages unexpectedly declined. The yen was little changed against the dollar at 113.71.

Futures on the Standard & Poor’s 500 Index dropped 0.2 percent. The underlying equity gauge closed 0.3 percent higher on Friday, bringing its run during the past three weeks to 7.3 percent. The additions to U.S. jobs in February exceeded economists’ forecasts for 195,000 jobs, sending the unemployment rate to its lowest since 2009. Average hourly earnings dropped, the first monthly decline in more than a year.

China outlined over the weekend a growth range of 6.5 percent to 7 percent for 2016, with 6.5 percent pegged as the baseline through 2020. That would be less than last year’s 6.9 percent rate, the slowest growth in a quarter century. The government also abandoned its trade target, underscoring the degree of uncertainty about prospects for global growth.

Source: Bloomberg