Asian Markets Mixed as Trump Blocks Oil Tankers to Venezuela
Asian shares exhibited a mixed performance on Wednesday, as robust buying in technology stocks contributed to the rise of certain benchmarks. Meanwhile, oil prices experienced a surge of over 1 percent following President Donald Trump’s directive to impose a blockade on all sanctioned oil tankers heading to Venezuela. Trump’s action came after US forces seized an oil tanker off the coast of Venezuela last week, marking an unusual development amid a military buildup in the region as his administration intensifies pressure on the authoritarian leader, Nicolas Maduro. Tokyo’s Nikkei 225 decreased by 0.3 percent, closing at 49,237.58, as traders remained on standby for a decision regarding an interest rate hike by the Bank of Japan later in the week. The government reported that the total value of machinery orders received by 280 manufacturers fell 6.8 per cent in October from the month before, reflecting other indicators of declining factory activity.
Chinese markets experienced a slight uptick, with Hong Kong’s Hang Seng rising by 0.2 per cent to reach 25,291.44, while the Shanghai Composite index increased by nearly 0.2 per cent, standing at 3,831.43. In South Korea, the Kospi advanced 0.7 per cent to 4,028.93, buoyed by computer chip maker SK Hynix, which gained 2.8 per cent, alongside a 3.6 per cent increase for Samsung Electronics. Australia’s S&P/ASX 200 declined by 0.2 per cent, settling at 8,581.00. On Tuesday, US stocks experienced a varied day of trading as reports concerning the US economy failed to alleviate uncertainty regarding the future direction of interest rates. One report indicated that the US unemployment rate reached its highest level since 2021 in November, although employers added more jobs last month than economists had anticipated.
A separate report indicated that an underlying measure of strength for revenue at US retailers increased more in October than economists had anticipated. The S&P 500 declined by 0.2 percent, settling at 6,800.26, and continues to hover slightly beneath the all-time high established last week. The Dow Jones Industrial Average fell by 0.6 percent, closing at 48,114.26, while the Nasdaq composite experienced a slight increase of 0.2 percent, reaching 23,111.46. The mixed data preserved traders’ optimism that the Federal Reserve might persist in reducing interest rates in 2026. The actions of the Fed regarding interest rates significantly influence financial markets, as reduced rates can stimulate the economy and enhance investment prices, despite the potential for increased inflation. A report set to be released on Thursday will reveal the extent of last month’s inflation, with economists anticipating it will indicate a continued rise in prices for US consumers, surpassing desirable levels.
A report released on Tuesday indicated that price pressures are increasing significantly, with average selling prices for businesses rising at one of the fastest rates observed since the middle of 2022. Preliminary data indicated that growth for overall business activity has decelerated to its lowest level since June. The most significant declines were observed among companies in the oil sector as crude prices continued to fall, driven by expectations that companies are supplying ample oil to satisfy global demand, pushing benchmark US crude to its lowest level since 2021. On early Wednesday, US benchmark crude increased by 73 cents to USD 56.00 per barrel, while Brent crude rose by 71 cents to USD 59.63 per barrel. APA’s stock declined 5.2 per cent, Marathon Petroleum fell 4.7 per cent, and Halliburton dropped 4.3 per cent. Stocks related to artificial intelligence showed mixed performance, with Oracle rising 2 per cent and Broadcom gaining 0.4 per cent, while CoreWeave declined 3.9 per cent amid lingering uncertainty over AI investment returns. In other dealings early Wednesday, the US dollar increased to 155.12 Japanese yen, while the euro slipped to USD 1.1732.
