· Asian shares slipped on Monday, weighed down by underperforming Chinese stocks, while oil prices rallied on news the United States is likely to ask all importers of Iranian oil to end their purchases or face sanctions.
Brent and U.S. crude futures surged to nearly six-month highs on news reports that U.S. Secretary of State Mike Pompeo will announce “that as of May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate.”
Asian equities dipped after Chinese stocks retreated from a 13-month high as comments from top policymaking bodies raised investor fears that Beijing will slow the pace of policy easing after some signs of stabilization in the world’s second-largest economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.3 percent, edging away from a nine-month peak scaled last week after Chinese economic data beat expectations and eased concerns about the health of the world economy.
· Japan’s Nikkei edged up on Monday in choppy trade as investors stayed on the sidelines before the Golden Week holiday starts later in the week, while Mitsubishi UFJ Financial Group underperformed on a report that it will book a writedown.
The Nikkei share average closed 0.1 percent higher at 22,217.90, after flitting between positive and negative territory.
Traders said that investors were likely to be defensive this week as they remained cautious before Japan’s 10-day holiday, also to mark the ascension of the new emperor, Crown Prince Naruhito, starting this weekend.
The Japanese market has gained 5 percent this month supported by stronger-than-expected Chinese economic data, which bodes well for sentiment in Japan Inc’s earnings. But as the Nikkei has hit a 4-1/2-month high this month, investors need more positive catalysts to chase the market higher, traders said.
· China stocks fell from a month high on Monday, posting their worst session in nearly four weeks, as comments from top policymaking bodies raised investor fears that Beijing will slow the pace of policy easing after some signs of stabilisation in the world’s second-largest economy.13-
The blue-chip CSI300 index fell 2.3 percent, to 4,025.61, while the Shanghai Composite Index skid 1.7 percent to 3,215.04, both logging their biggest single-day drop since March 25.
Reference: Reuters, CNBC
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