Asian markets mostly up on oil price rise

Hong Kong - Asian stock markets mostly rose on Monday following a rally on Wall Street and a jump in oil prices, but Shanghai plunged almost 8% after regulators punished three major brokerages for breaking rules.

The euro continued to struggle against the dollar and yen before this week's European Central Bank (ECB) meeting, which is expected to unveil a vast bond-buying scheme to kickstart the eurozone economy.

READ: Euro weakens in Asia on ECB stimulus risk

Tokyo rose 0.89% to 17 014.29, Sydney gained 0.19% to 5 309.1 and Seoul closed 0.77% higher, adding 14.49 points to 1 902.62.

However, Shanghai was hammered, diving 7.70% to close at 3 116.35 - its biggest fall since June 2008. Hong Kong fell 1.51% to end at 23 738.49.

China aside, regional investors were given a positive lead from New York, where all three main indices finished last week on a high thanks to a pick up in oil prices.

The Dow rose 1.10%, the S&P 500 added 1.34% and the Nasdaq rallied 1.39%.

Crude gained after the International Energy Agency said there were signs "the tide will turn" in the market after prices tumbled towards six-year lows.

While it predicted that prices will fall in the short term, the Paris-based agency said it expected the market to rebalance in the second half of the year.

The comments sent US benchmark West Texas Intermediate (WTI) for February surging $2.44 Friday, while Brent for March jumped $2.50.

However, on Monday the two contracts retreated slightly. WTI eased 68 cents to $48.01 a barrel and Brent fell 53c to $49.64.

Blow to China market

In Shanghai shares plunged after the China Securities Regulatory Commission (CSRC) on Friday suspended three brokerages from opening new margin trading accounts for three months after they violated market rules.

The news was a blow for Chinese stocks, which surged more than 50% last year helped by an interest rate cut in November.

The market was also driven by ample liquidity and margin trading -- when investors borrow funds to trade with only a small deposit.

The three brokerages - Citic Securities, Haitong Securities and Guotai Junan Securities - are among the country's biggest.

"The CSRC's punishment of the three brokerages for rule violations for margin trading business last Friday was a punch to the market," BOC International analyst Shen Jun told AFP.

Eyes are now on the release Tuesday of Chinese economic growth data for 2014.

An AFP survey predicted expansion of 7.3%, down from 7.7% in 2013, which would be the slowest annual rate since 1990, a year after the Tiananmen Square crackdown.

On currency markets, the euro fetched $1.1563 and ¥135.42, against $1.1566 and ¥135.87 in New York on Friday.

The single currency is facing selling pressure before the ECB meeting on Thursday. Analysts are forecasting it will see the introduction of massive sovereign bond purchases, known as quantitative easing.

The scheme essentially entails the bank printing euros to boost lending and fight off deflation. However, with more cash in circulation, the value of the single currency falls.

On Friday, the unit sank below $1.1500 for the first time since November 2003.

The dollar changed hands at ¥117.11, compared with ¥117.46 in New York on Friday.

Gold fetched $1 275.51 an ounce, against $1 257.60 late on Friday.

In other markets:

- Taipei rose 0.39% to 9 174.06.

Taiwan Semiconductor Manufacturing added 1.46% to Tw$139.0 while Hon Hai Precision Industry was 0.48% lower at Tw$83.7.

- Wellington added 0.38% to 5 638.14.

Spark was up 2.63% at NZ$3.32 while Fletcher Building was down 0.62% at NZ$8.04.

- Manila was marginally lower, dipping 5.56 points to 7 485.32.

Universal Robina fell 0.6% to 198.80 pesos while Metrobank rose 2.24% to 91.40 pesos.

- Mumbai rose 0.50% to end at 28 262.01.

Software major Wipro gained 5.26% to 584.45 rupees, while Hindustan Unilever fell 5.27% to 892.80 rupees.

- Bangkok rose 1.16% to 1 535.37.

Bank of Ayudhya soared 9.73% to 62.00 baht, while Glow Energy gained 4.08% to 89.25 baht.

-- Kuala Lumpur added 0.56 percent, or 9.74 points, to end at 1,753.31.

Malayan Banking gained 2.21% to 8.79 ringgit, Public Bank rose 0.46% to 17.64 while Sime Darby slipped 0.11% to 9.30 ringgit.

- Jakarta ended up 0.07% at 5 152.09.

Auto maker Astra International gained 1.71% to  7 425 rupiah, while cement maker Semen Indonesia fell 6.00% to 14 100 rupiah.

- Singapore rose 0.21% to close at 3 307.7.

Oil rig maker Keppel jumped 1.87% to Sg$8.18, while Singapore Airlines finished 1.73% lower at Sg$11.90.