Asian shares advance following rebound on Wall Street
BANGKOK (AP) — Shares advanced in Asia on Tuesday, lifted by a surge in oil prices and an overnight rebound on Wall Street thanks to a solid showing from big technology companies.
Shares rose in Hong Kong, Sydney and Singapore. Markets in Tokyo, Shanghai and Seoul were closed for a holiday.
A recovery in oil prices was helping drive gains in Asia on Tuesday as the U.S. benchmark added $1.79, or nearly 9%, to $22.18 per barrel in electronic trading on the New York Mercantile Exchange. It climbed 61 cents on Monday to $20.39.
Brent crude, the standard for international pricing, picked up $1.58 to $28.78 per barrel.
“The feeling on the floor is that energy is in a better spot, and while it’s not brilliant, the supply/demand equation is starting to shift in a more positive direction," Chris Weston of Pepperstone said in a report.
Oil prices had collapsed as demand plummeted amid business shutdowns and travel restrictions due to the pandemic. A price war between Russia and other oil producers further roiled the market. At one point, U.S. benchmark crude was priced so low that producers would have been paying customers to take the oil away.
The glut of oil threatened to exceed storage capacity. But the lifting of lockdowns and other restrictions to contain outbreaks of the new coronavirus that causes COVID-19, at least in some places, has raised hopes for at least some recovery in demand.
Weston noted that interest was shifting to July futures for U.S. crude. The current benchmark is for June delivery.
“Brent crude is also having a better time of it and the $30-level is a clear target," he said.
In share trading, Hong Kong's Hang Seng added 1% to 23,839.21, while the S&P/ASX 200 in Australia climbed 1.6% to 5,407.10. India's Sensex bounced back from a plunge on...
