Asian stocks turned
negative Friday and oil prices retreated along with the dollar as investors
took a step back from a recent rally, while caution set in ahead of a crunch
referendum in Italy at the weekend.
World markets have
been rising since Donald Trump's shock US election win on hopes his
big-spending, tax-cutting policies will boost the world's largest economy.
The advance was
given extra impetus Wednesday when OPEC agreed on a plan to cut oil production,
sending prices soaring.
But James Woods,
global investment analyst at Rivkin Securities in Sydney, told Bloomberg News:
"Markets have rallied pretty strongly and we had three fantastic weeks but
buying pressure certainly looks exhausted.
"We will see
some corrective declines and profit taking."
Japan's Nikkei,
which on Thursday closed at its highest level this year, slipped 0.47 percent
by the break, while Hong Kong gave up 0.6 percent and Shanghai slipped 0.1
percent.
Sydney fell 0.6
percent, Seoul shed 0.5 percent, while Singapore and Wellington each gave back
0.2 percent.
Japanese exporters
retreated on the back of a strengthening yen. In early trade the dollar bought
113.75 yen, having flirted with 115 yen earlier this week, which was a
nine-month high.
On oil markets both
main contracts dipped marginally after racking up double-digit gains in the
previous two days in reaction to OPEC's output-cutting deal.
Traders are now
awaiting key events at the weekend. On Friday the US releases its November jobs
report, which could give an indication of the Federal Reserve's plans for
interest rates over the next year.
And on Sunday Italy
goes to the polls for a constitutional referendum, with Prime Minister Matteo
Renzi saying he will resign if his government loses, leading to a possible
general election.
While experts say
the chances of a Eurosceptic party gaining power is low, there are worries
about the uncertainty it could create in one of the EU's biggest economies.
Also Sunday
Austrians will vote for a new president, with Norbert Hofer seeking to become
Europe's first far-right president since 1945.
While the post is
largely ceremonial, a win for Hofer would be a major symbolic victory for
populists -- many of whom are anti-EU -- across Europe ahead of several
elections in 2017.
- Key figures around
0230 GMT -
Tokyo - Nikkei 225:
DOWN 0.47 percent at 18,425.45 (break)
Hong Kong - Hang
Seng: DOWN 0.6 percent at 22,746.38
Shanghai -
Composite: DOWN 0.1 percent at 3,270.50
Euro/dollar: UP at
$1.0672 from $1.0661 Thursday
Dollar/yen: DOWN at
113.75 yen from 114.11 yen
Pound/dollar: UP at
$1.600 from $1.2591
Oil - West Texas
Intermediate: DOWN 21 at $50.85 per barrel
Oil - Brent North
Sea: DOWN 36 at $53.58 per barrel
New York - Dow: UP
0.4 percent at 19,191.93 (close)
London - FTSE 100:
DOWN 0.5 percent at 6,752.93 (close)
AFP
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