Global stocks advance while crude extends rally

Tokyo - Global equities climbed in thin trading, while oil headed for the longest winning streak in almost seven years. The yen weakened for a second day.

The MSCI Asia Pacific Index advanced for the first time in seven days after US stocks eked out post-Christmas gains.

European equities fluctuated and Hong Kong stocks rose the most in a month after being closed on Monday and on Tuesday. More than twice as many shares on Japan’s Topix index rose than declined.

Crude climbed for an eighth session before Opec and other producing nations start reducing output. The yen fell the most among major currencies against the dollar.

Trading has been thin across the globe during the last week of the year, with volume on the Topix about 45% below the 30-day average on Wednesday.

Investors have displayed resilience in the face of shocks such as the Brexit vote and Donald Trump’s presidential win, sending the dollar to the highest level in more than a decade and propelling US equity benchmarks to records.

"Gains at the start of the week on Wall Street and the rally in crude oil prices have helped most Asian markets move into black this morning," said Jingyi Pan, market strategist at IG Asia. "Nevertheless, we again have the condition of low volume plaguing markets."

Stocks

The Stoxx Europe 600 Index swung between a gain and loss of less than 0.1%. Hong Kong’s Hang Seng Index added 0.8%, rebounding from a five-month low, as banks led a rally by Chinese companies.

The Hang Seng China Enterprises Index rallied 1.3%, the most in a month, and the Shanghai Composite Index lost 0.4%. The Jakarta Composite Index headed for the biggest two-day since February, extending Tuesday’s 1.5% gain.

The Philippine Stock Exchange Index posted the steepest advance since October.  

The Topix was flat, with about 10% of companies in the benchmark measure trading without the right to receive the next dividend. India’s S&P BSE Sensex rose 0.5%, extending Tuesday’s 1.6% gain following the recent decline to a five-week low.

South Korea’s Kospi index declined 0.9%, the most in two weeks. Australia’s S&P/ASX 200 Index was up 1% after holidays on Monday and on Tuesday.

The S&P 500 Index extended its monthly advance on Tuesday with a gain of 0.2%. The Nasdaq Composite Index rose to an all-time high and the Dow Jones Industrial Average approached 20 000.

Commodities

Crude futures jumped 0.4% to $54.10 a barrel, extending Tuesday’s 1.7% climb. Prices are set to recover next year as production cuts help rebalance an oversupplied market, Saudi Arabia’s Energy Minister Khalid Al-Falih said last week.

OPEC and 11 nations from outside the group including Russia have agreed to trim about 1.8 million barrels a day from January. Gold was up 0.3% at $1 141.71, climbing for a third day from an 11-month low.

Currencies

The yen slipped 0.1% to 117.57 per dollar after falling 0.3% on Tuesday. The Bloomberg Dollar Spot Index was little changed, still trading near the highest level in more than a decade.