Asia set to follow US stocks higher – CNBC

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On Sunday, the world’s largest oil exporting countries failed to reach an agreement in Doha, Qatar, to freeze output at January levels in order to tackle the global supply glut.

The deal’s failure initially sent oil prices tumbling over 5 percent. The reversal came after reports said that a workers’ strike in Kuwait had hit the gulf country’s daily oil output. Reuters reported that the strike cut the OPEC producer’s crude output by more than 60 percent, from about 3 million barrels per day to about 1.1 million.

Analysts said Kuwait’s reduction in output remains supportive for crude for the time being.

The reversal in oil prices gave an overnight boost to commodity currencies such as the Australian dollar.

The Aussie traded at $0.7761 as of 8:36 a.m. HK/SIN time, compared with around $0.76 during Asian hours in the previous session.

“Investors were relieved that oil did not fall 10 percent on the back of the Doha meeting and they were quick to reward risk currencies like the Australian and New Zealand dollars with gains,” said Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, in a morning note.

Asia set to follow US stocks higher – CNBC}