Oil rebounds back above $30 in calmer markets, yen eases

There was calm in Asian equity markets on Wednesday, helped by China’s efforts to stabilise its currency.

Encouraging Chinese exports data out today also helped with risk sentiment. Even oil prices saw a rebound this morning after dipping below $30 a barrel.

As a result, safe haven assets were less appealing. The Japanese yen was 0.5 per cent weaker at Y118.25 per dollar, while the price of gold, also traditionally a haven, was down for a fourth straight day, shedding 0.2 per cent to $1,084.11.

The Australian dollar was the best performer, up 0.7 per cent against the greenback, followed by the New Zealand dollar, up 0.6 per cent.

In equity markets today, the Tokyo Nikkei gained 2.7 per cent while Hong Kong’s Hang Seng rallied 2.3 per cent. Australia’s S&P/ASX 200 jumped 1.2 per cent. The Shanghai Composite and the tech-focused Shenzhen Composite were each up 0.7 per cent. The CSI 300, which comprises blue chips from both exchanges, added 0.8 per cent.

The gains followed a shaky but ultimately positive US session, where a late rally allowed the S&P 500 to close with a gain of 0.8 per cent, while the Dow Jones Industrial Average added 0.7 per cent and the Nasdaq Composite rose 1 per cent.

West Texas Intermediate, the US oil benchmark, dipped below $30 a barrel on Tuesday for the first time since December 2, 2003 but bounced higher early on Wednesday to rise 1.5 per cent to $30.88. Brent crude, the international benchmark, climbed 1 per cent to $31.18 a barrel.

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