Most Asian stocks advanced Monday after downbeat U.S. home sales on Friday led some to expect the Federal Reserve may delay paring its bond purchases. The Shanghai Composite Index edged 0.3% higher in choppy trade, and Hong Kong’s Hang Seng Index rose 0.7%, with both benchmarks also aided by some better-than-expected results from various Chinese firms.
Crude oil for October delivery advanced 51 cents to $106.93 a barrel, adding to Friday’s 1.3% rally on the New York Mercantile Exchange. The contract rose as high as $107.37 earlier in the day.
The advance came as the U.S. reportedly considered using military force in the Syrian civil war after the government there allegedly used chemical weapons against civilians. While Syria isn’t a major oil producer, unrest in the key petroleum-producing Middle East region can prompt broad concerns about crude supply, which in turn bid up oil futures.
The U.S. dollar swung between small gains and losses against major counterparts Monday. The ICE dollar index, which measures the U.S. currency against six others, slipped to 81.360, down marginally from 81.366 late Friday in North America.
This weekend, Federal Reserve officials finished their annual retreat in Jackson Hole, Wyo., and experts attending the conference said the Fed is on track to reduce stimulus efforts in September, with a desire by bank officials to return to conventional monetary policy. The Fed currently buys $85 billion a month in assets to aid economic growth.
MCX September crude oil futures may open today’s session near Rs 6870 levels with resistance near Rs 6900-40 levels.
