Asia stocks at mercy of post-Doha oil moves – CNBC
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The commodity sold off after the meeting between the world’s largest oil producing countries in Doha failed to produce a deal to freeze output and boost sagging crude prices.
Analysts said the Doha outcome was largely to be expected, with some pointing to the geopolitical situation in the region.
In his morning note, Nicholson said, “With Saudi Arabia fighting proxy wars with Iran in Yemen and Syria/Iraq, it is understandable that they had little inclination to freeze their own production and make way for newly sanctions-free Iran to increase their market share.”
In Japan, the yen climbed and stocks tumbled after a powerful second earthquake struck southern Japan on Saturday. Reuters reported the 7.3 magnitude earthquake caused widespread damage, with reports of fires, power outages, collapsed bridges and gaping holes in the earth. Manufacturers including Honda, Renesas Electronics and Sony halted production after the tremors, but no major damage was reported, according to Reuters.
The yen rose to the 108 level against the dollar; late last week, the yen traded at the 109 level against the dollar. As of 8:39 a.m. HK/SIN time, the dollar/yen pair was at 108.07, after briefly dipping to 107.88 earlier.
Japanese exporters sold off sharply, with shares of auto players Toyota, Nissan and Honda down between 4.76 and 5.52 percent. A stronger yen is usually a negative for exporters as it affects their overseas profit when converted to local currency.
Shares of Sony were down 5.83 percent.
Elsewhere, the Australian dollar retreated to $0.7657 after finishing the previous session at $0.7719 on the back of slightly improved Chinese economic data released Friday. China is a key export market for Australia and the Aussie tends to move in tandem to the mainland economy.
Asia stocks at mercy of post-Doha oil moves – CNBC}