Stocks in Asia were little changed in Friday morning trade following a record surge in oil prices overnight that saw U.S. crude futures soaring more than 24%.
It affected to the other places in Asia and its stocks. Mainland Chinese stocks were mixed in early trade, with the Shanghai composite down about 0.3% while the Shenzhen composite was largely flat. Hong Kong’s Hang Seng index dipped 0.69%.
According to CNBC, In Japan, the Nikkei 225 gained 0.33% while the Topix index was 0.61% higher. South Korea’s Kospi also rose 0.48%. Meanwhile, shares in Australia slipped, with the S&P/ASX 200 down 0.36%. Overall, the MSCI Asia ex-Japan index traded 0.17% lower.
The moves came after an overnight surge in oil prices, though some of those gains were retraced in the morning of Asian trading hours Friday. With international benchmark Brent crude futures declining 2.24% to $29.27 per barrel. U.S. crude futures also fell 4.15% to $24.27 per barrel.
Oil Prices Eventually Gain
According to CNBC, oil companies in Asia Pacific were mixed, with Australia’s Santos surging 6.3% . Meanwhile, Japan’s Inpex gained 3.69%. Hong Kong-listed shares of PetroChina, on the other hand, declined 2.61%.
Still, concerns over the economic impact of the global coronavirus pandemic are likely to linger. On Thursday, the U.S. Labor Department said U.S. initial jobless claims surged to more than 6 million last week, reaching a new record as coronavirus-related shutdowns roll through the country.
Commonwealth Bank of Australia’s Joseph Capurso wrote in a note. He wrote, “It is only the beginning because more US states are applying lockdowns.” He said the data indicates the non farm payrolls report for April will likely indicate a “large jump in unemployment.”
Investors have been watching data releases out of China for clues on the economic impact of the coronavirus. The first reported cases came out of the country. As a matter of fact, authorities imposed measures such as an extended holiday period to prevent the disease’s spread.