SINGAPORE- Oil prices surged on Monday, US stock futures slid while those in Asia charged higher as investors took stock of the contrasting fortunes between the United States and the rest of the world.
The week is a busy one with a series of central bank policy meetings, including by the US Federal Reserve. It is widely expected to keep rates on hold when its meeting concludes on Wednesday.
The CSI300 blue-chip index reversed early gains to last trade 0.07 percent lower.
The Shanghai Composite Index was still up 0.28 percent, while Hong Kong’s Hang Seng Index jumped more than 0.8 percent.
That helped extend early gains in MSCI’s broadest index of Asia-Pacific shares outside Japan which last traded 1 percent higher at a one-week top.
Japan’s Nikkei advanced 1.24 percent.
While Asia stocks started the week on a strong note, over in the United States, futures pointed to a dour opening on Wall Street.
Nasdaq futures were down 0.44 percent in the Asian session, while S&P 500 futures fell 0.4 percent.
Over the weekend the US defense secretary said the country would continue attacking Yemen’s Houthis until they ended attacks on shipping, sending oil prices sharply higher in early Asia trade on Monday as investors worried about disruptions to supply.
Brent futures were up 1.06 percent at $71.33 per barrel, while US West Texas Intermediate crude futures also jumped 1.12 percent to $67.94 a barrel.
“We’ve got a reemergence of those geopolitical tensions,” said Tony Sycamore, a market analyst at IG. “If crude oil gets much above $68.50, I think that could really start to trigger some short covering in the market.”
