Wednesday 8 June 2016

Asian Shares Near Six-Week high on oil, Fed Expectations

Asian shares held near six-week highs on Wednesday, on a brightening outlook in the energy sector and hopes that the US Federal Reserve will not raise interest rates in the coming months after a disappointingly weak US jobs report. MSCI's broadest index of Asia-Pacific shares outside Japan was flat after hitting a near six-week high the previous day. 

Japan's Nikkei was also flat. On Wall Street, the US S&P 500 Index rose 0.1 percent to 2,112, less than 20 points away from its record closing high marked in May last year. 

The gains were led by 2.1 percent gains in energy shares as oil prices jumped more than 1 percent to hit 2016 highs on expectations of domestic stockpile draws and worries about supply shortfalls from attacks on Nigeria's oil industry. 

A report by trade group American Petroleum Institute (API), released after Tuesday's close showed a crude draw of 3.6 million barrels, larger than expectations of 2.7 million barrels, supporting the market.

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