· Oil at new multi-year highs, Asian shares fall
Asian shares dropped on Wednesday, reversing early gains, after an overnight rebound in U.S. and European stocks as investors shrugged off worries about a potential U.S. government debt default, while oil paused near new multi-year highs.
The gains in oil are driven by concerns about energy supply, and come two days after the OPEC+ group of producers stuck to its planned output increase rather than raising it further.
U.S. crude rose to its highest level since 2014 on Wednesday but pared gains and was last off 0.09% to $78.87 a barrel. Brent crude lost 0.08% to $82.49 per barrel, having hit a three-year high in the previous session.
Rising prices could threaten the global economic recovery as global oil demand growth was picking up as economies re‑opened on the back of rising vaccination rates, they added.
In equity markets, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.6%, reversing early gains, while Japan's Nikkei (.N225) lost 0.78%.
Traders say markets are jittery due to worries about China's real estate market as well as approaching higher interest rates around the world.
There were falls in Hong Kong (.HSI) off 1%, Korea (.KS11) down 0.9% and Australia down 0.45%.
U.S. stock futures, the S&P 500 e-minis shed 0.44%.
Chinese markets remained closed for a public holiday, and shares of cash-strapped Chinese developer China Evergrande (3333.HK) were suspended having stopped trading on Monday pending an announcement of a significant transaction.
Uncertainty about Evergrande's fate roiled Chinese property developers' bonds and Hong Kong-listed shares and bonds on Tuesday following fresh credit rating downgrades.
· Indonesia, Philippine shares scale new highs, track U.S. rebound
· European markets tumble as U.S. bond yields surge; Stoxx 600 down 1.5%
Reference: CNBC, Reuters
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