Oil Drops After Saudis Say Will Freeze Output Only If Iran Joins

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Oil extended declines after Saudi Arabia’s deputy crown prince said the kingdom will only freeze output if Iran follows suit, putting in doubt the success of a proposed deal between major producers.

Futures declined as much as 1.6 percent in New York after a 4 percent drop on Friday. Saudi Arabia’s Mohammed bin Salman signaled in a interview with Bloomberg that if any country raises output, his nation will also boost sales. With producers scheduled to meet this month to discuss a pact on capping supplies, Iran’s oil minister said he’ll attend the gathering if he finds the time. Russian oil production set a post-Soviet high in March.

West Texas Intermediate for May delivery dropped as much as 58 cents to $36.21 a barrel on the New York Mercantile Exchange, and traded at $36.28 at 9:13 a.m. Singapore time. The contract fell $1.55 to $36.79 on Friday. Total volume traded was about 40 percent above the 100-day average.

Source: Bloomberg

Yen Gains Has Top Forecasters Clashing With Others on Direction

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The yen held gains from Friday as the currency’s best quarter since 2009 against the dollar fueled speculation the Bank of Japan may be running out of tools to weaken it.

Japan’s currency appreciated 6.8 percent in the first quarter, signaling that three years of stimulus have been priced in. Julius Baer Group Ltd., Sumitomo Mitsui Banking Corp. and Australia & New Zealand Banking Group Ltd., the most accurate yen forecasters in the latest Bloomberg rankings, predict the currency will end the year stronger. In contrast, the median estimate among analysts is for the yen to weaken to 119 per dollar by the end of 2016.

The yen gained 0.2 percent to 111.50 per dollar as of 9:54 a.m. in Tokyo from Friday, when it climbed 0.8 percent. It was at 127.18 per euro following a 0.7 percent jump to 127.21 at the end of last week.

Citigroup’s forecast is for the yen to be little changed from now at 111 per dollar.

Source: Bloomberg

Asian Stocks Rise After U.S. Jobs Data; Japanese Shares Retreat

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Asian stocks rose, following U.S. shares higher, as expectations for an immediate hike in U.S. interest rates remained low even after better-than-expected economic reports.

The MSCI Asia Pacific Index climbed 0.4 percent to 126.49 as of 9:19 a.m. in Tokyo, after slumping last week by the most since Feb. 12. The Standard & Poor’s 500 Index rose to its 2016 high on Friday after data showed employment and wages picked up in March, while U.S. manufacturing expanded for the first time in seven months. The chance of a hike at the Fed’s next meeting fell to zero after Chair Janet Yellen reaffirmed the go-slow approach in a speech last week.

Japan’s Topix index and South Korea’s Kospi index were little changed. Australia’s S&P/ASX 200 Index and New Zealand’s S&P/NZX 50 Index added 0.2 percent. Markets in mainland China, Hong Kong and Taiwan are shut for holidays today.

Source: Bloomberg

Japan Stocks Fall for Fifth Day After Yen Climbs on U.S. Data

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Japanese stocks fell for a fifth day after the yen strengthened against the dollar following a flurry of U.S. economic data that did little to change the view that the Federal Reserve will take a gradual approach to raising interest rates.

The Topix index declined 0.5 percent to 1,295.14 as of 9:01 a.m. in Tokyo, adding to last week’s drop of 4.7 percent, its worst weekly performance in two months. The Nikkei 225 Stock Average slid 0.4 percent to 16,095.23. The yen traded at 111.70 per dollar after strengthening 0.8 percent on Friday. Even with signs of life in American manufacturing and jobs data that topped estimates adding to optimism in the U.S. economy, traders still don’t expect higher interest rates until the fourth quarter.

Futures on the Standard & Poor’s 500 Index slipped 0.2 percent after the underlying gauge added 0.6 percent on Friday to close at the highest level this year. Optimism in the U.S. economy and expectations for only gradual Fed tightening overshadowed a selloff in oil.

Source: Bloomberg

Hong Kong Main Index Falls The Most in 5 Weeks After S&P Downgrade (review)

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Hong Kong's benchmark index suffered its biggest one-day loss in five weeks on Friday, after rating agency Standard & Poor's downgraded its outlook for China and Hong Kong.

The Hang Seng index fell 1.3 percent, to 20,498.92, its biggest one-day percentage loss since Feb. 25. For the week, the Hang Seng was up 0.8 percent.

The China Enterprises Index lost 1.8 percent on Friday, to 8,842.86 points. For the week, it gained 1.6 percent.

S&P on Thursday cut its outlook for China's sovereign credit rating to negative from stable, and also downgraded the outlook for Hong Kong.

Shares fell across the board, with the energy sector among the biggest decliners.

Source : Reuters