It was rally time for oil companies Exxon Mobil and Chevron which gained the most in yesterday’s trading amidst the news that the price of oil reached the highest after more-than two-years. Whereas Chevron made a 2.5% increase, Exxon Mobil obtained 2.3% growth. The New York Mercantile Exchange showed a growth of $1.09, or 1%, to end at $110.10 a barrel for oil futures for October delivery.
Oil Prices Expected to Rise
Despite the news that Britain has introduced the United Nations proposal for military intervention in Syria that may cause turmoil in the region and consequently disrupt oil supplies, Brent crude gained 1.4 percent. Similarly, the U.S. crude futures rose 0.4 percent and are up 5.3 percent amidst the fear that any military intervention on the part of the U.S. could create supply disruption.
Oil hit its highest since May 2011 which according to some stock analysts is a good investment option for they feel that to hedge against Middle East uncertainty, it is better to buy energy shares.
Asian Stocks Recover
Whereas after a three-day sag, Japan’s Nikkei Stock Average gained 0.4%, Hong Kong’s Hang Seng Index recorded an increase of 0.5%. Similarly, South Korea’s Kospi experienced a 1.2% increase; however, it was Indonesia’s JSX Composite that recorded 1.6%, slightly higher than the Philippines’s PSEi Index that rose by 1.1%.
Some companies that performed better than expected are the Shanghai-listed shares of AgBank, China Minsheng, and China Life. Though these received quite insignificant growth, investors are happy about the improvement. AgBank received a meager growth of 0.4% similar to China Life which recorded the same growth rate. China Minsheng on the other hand rose at 0.3%.
Japanese Stocks Performed Better
Japanese stocks in yesterday’s trade ended at an optimistic note. However, Reuters reports that foreign brokers are selling Japanese stocks placed through six foreign securities houses before the start of trading on Thursday. The global news agency reported that whereas 14.6 million shares are for sell, only 10.8 million shares are for buy options.
Japanese stock market got a boost from increased shipping and petrochemical firms wherein firms such as Kawasaki Kisen Kaisha Ltd., Showa Denko K.K advanced further. However, it was a bad day for Panasonic Corp. slid 2.2% after the reports that the company is all set to exit the consumer smart phone segment.
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