Business

Oil price improves, supports Asian stocks

TheMole
Written by TheMole

March 10 2020

Oil prices jumped around six percent today after plunging by a third the previous day, the worst session since the 1991 Gulf War.

The sharp bounce provided some support to under-pressure Asian stocks after global equities suffered their biggest losses in more than a decade yesterday.

Yesterday, which has become known as “Black Monday”, saw the Dow Jones Index losing more than 2,000 points.

Japan’s main Nikkei index pared back losses by more than half this morning, helped by a sell-off in the yen, which is normally heavily bought during times of market uncertainty.

In China, the benchmark Shanghai Composite Index opened 0.61 percent higher at 2,961.38 points, while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, opened 0.63 percent higher, up 11.68 points, at 1,854.34.

Market panic yesterday was driven by the spreading Covid-19 epidemic and a spat between Saudi Arabia and Russia over oil production that had caused the huge jump of prices.

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TheMole

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