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Despite the doubts on the OPEC deal to cut overall global production being implemented, Asian shares were mostly down during Monday’s early trading in the midst of oil futures recording rallies with the most recent trading session rallying to its highest price yet in the past couple of months. Gains led on by higher oil prices were erased from the

Asian shares, mostly in China were off during Monday’s session after some insurance firms have reportedly been splurging and investing in short-term trading. Although this has temporarily boosted the trading activity in most markets in the country, insurance regulators in the country have banned a couple of insurance companies including the Evergrande Life from going on and investing in stocks.

Analysts have stated that the recent move of the Chinese insurance regulating firm might have something to do with the recent actions of insurance companies which were believed by regulators to have disturbed their overall management. However, the recent action of the regulator was not anticipated for by the insurance firms.

Trading in Shanghai and Shenzhen respectively have been lower by as early as Monday with insurance companies being the biggest losers. Among the biggest losers includes the China Life Insurance and the New China Life Insurance declining down by 1.1% and 1.8% respectively as China regulators have started to ban a number of insurance companies from investing in stocks anymore.

Although oil market investors have reacted positively on the OPEC agreement between non-OPEC countries such as Russia to cut daily production, Asian markets remained unimpressed as the Shanghai Composite ended down by dropping to as much as 1.82% before ending down at 2.5% which is the lowest level since June 13. The People’s Bank of China also dropped to as low as 6.9086 hitting their lowest level since two weeks ago leading the yuan to drop to a two-week low against the greenback. The Shenzhen Composite Index also dropped to as much as 4.9%. The Shanghai Composite has currently dropped by more than 2%.

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Japanese Shares

Although the Chinese shares did not eventually gain from the recent surge in oil prices, Japanese shares shot up recovering from their recent losses as the Nikkei and Topix have jumped by not less than 10% for the past couple of months posting a bullish outlook with a number of stocks recovering dramatically as investors looked forward to a much more positive recovery which can be brought about by not just rising oil prices but an economic stimulus from Donald Trump’s presidency.

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