Shares in Asia were mixed amid Tuesday’s session, as investors are closely watching on U.S. consumer price data, including the potential uncertainties in Nigeria and Venezuela as oil prices remained flat.
Meanwhile, the S&P/ASX 200 increased by about 0.54%, while Japan’s Nikkei 225 added 0.77%.
The Shanghai Composite Index remained steady at 0.37%, while the Hang Seng index settled at 0.02%.
The yuan rallied marginally against the greenback on Tuesday after the fixing was set stronger by the People’s Bank of China in three days and settled at 6.52 compared with the prior 6.53.
Investors are closely watching for the results of the April Consumer Price Index (CPI) for further signals on a potential rate hike of the Federal Reserve for this year. Analysts are expecting a slight increase of 0.3% in April CPI, in response to the recent gain of 0.1% in March.
The Core CPI Index, which offsets volatile price of food and energy is anticipated to increase by about 0.2%. As a rate hike proceeds for the first time for over seven years in December, the Fed remained hesitant to tighten monetary policy cycle, considering a sluggish inflation.
Subsequently, investor eyes on uncertainties in Nigeria and Venezuela.
It was reported that Venezuela’s PDVSA – state run oil firm will acknowledge all debt commitments this year, at the same time recognize the necessity for a new debt restructuring in the next months.
Venezuela, which stems about 95% of its total exports mainly from oil, has witnessed its deficits to surge during an instability of oil prices in the last two years.
Nigerian’s Exxon Mobil Corporation ceased exports from the largest crude steam of the nation during the conflicts of insurgent militant group on the oil pipelines of the Southern area of the country.
In addition to other closures of Royal Dutch Shell A and Chevron Corporation, the production of Nigeria has seen a decline of 1.65 million barrels a day, suggesting its lowest level since a decade.
Shares in the U.S. rallied sharply overnight on Monday’s session, suggesting its third consecutive straight week of drops last Friday, fueled by oil futures which settled at 6-month highs. Moreover, billionaire investor Warren Buffett’s firm Berkshire Hathaway Inc encouraged a boost in the major indices after announcing a major stake in Apple Inc.
The Dow Jones Industrial Average rose by about 175.39 or 1.00% to 17,710.71, while the NASDAQ Composite index climbed about 57.78 or 1.22%, hitting 4,775.46 and both have trimmed down earlier losses in the week.
As part of the gains, the NASDAQ rose sharply for the first time in four sessions after the market close. The S&P 500 Composite index increased by about 20.05 or 0.98% to change hands at 2,066.66, boosted by 10 sectors ended in the green.
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