Asian stocks rally, but gains tempered by losses in oil
|Most Asian equities rallied this Thursday morning with gains being capped to some extent due to the weakness in the energy stocks and moderate losses on the Wall Street.
Japan’s Nikkei gained 50 points on strong export figures. Australia’s ASX 200 added 14 points, while South Korea’s Kospi traded flat. S&P500 shed 4 points, while Dow dropped 118 points.
Energy shares dropped as oil prices fell to a two-week low in the overnight trade after US reported a surprise buildup in gasoline inventories. WTI Oil nearly dropped 4%, the biggest one-day decline since March 8.
There is a growing divide in the markets about the health of the markets and the global economy. The forward looking inflation expectation measures show the Trump trade has run out of steam. On the other hand, the Federal Reserve's Beige Book report showed the US economy continued to grow steadily and Fed vice chairman Stanley Fischer painted a picture of brightening global growth.
Come amount of caution is likely to seep into the markets across the globe ahead of the first round of voting in France's presidential election this weekend, polling is suggesting it will be a close call.
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