Asia-Pacific stock markets witnessed mixed reactions amid the Oil price rise of 2%
The Australian market started with the green signals, however, plummeted as the market was closing.
The Asia-Pacific stock markets witnessed mixed reactions due to the economic recovery aspects of the U.S economy.
The Australian market started with the green signals however, plummeted as the market was closing. The ASX climbed 1.05% due to better performance of heavily weighted financial giants. It was accompanied by growth in banking & mining stocks as well.
In Japan, Nikkei witnessed a rise of (0.5%). It can be attributed a rise in Mitsubishi UCJ Financial Group & witness a rise by (3.5%), whereas the Sumitomo Financial Group saw a rise of about (2.5%).
Meanwhile, South Korea’s Kospi witnessed a decline by (0.32%). It was followed by a decline in the Hang Send Index which plummeted by (1.5%).
In China, The Shenzhen & Shanghai indexes plummeted by (0.3%) & (0.4%) respectively.
This can be attributed to the potential recovery aspects of the U.S Economy which was led by the non-farm payroll report. The U.S President Biden’s move with the Fiscal policies may have impact on the behavior of investors making the Asia-Pacific a fragile economy due to weak relations with the U.S.
This fiscal experiment involves direct payments of $1500 to majority of Americans which is one aspect of the USD 1 Trillion relief package of coronavirus impact on the country.
A rise in the USD & Japanese Yen due to rise in the Oil Prices may have been the other exogenous factors contributing to this impact.
This Oil Price rise can be attributed to the attack on Saudi Arabia’s Oil facilities made by Houthi Militants.