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Market Buzz- 7th November 2017
07 Nov 2017
Asian stocks rose Tuesday after Wall Street posted modest gains. Turmoil in Saudi Arabia sent crude prices surging. Tokyo's Nikkei 225 rose 0.8percent to 22,729.23 and the Shanghai Composite Index advanced 0.6percent to 3,406.57. Hong Kong's Hang Seng gained 0.9percent to 28,868.82 and Sydney's S&P-ASX 200 rose 0.7percent to 5,995.10. Seoul's Kospi shed 0.1percent to 2,547.32. Benchmarks in Taiwan, Singapore and Jakarta advanced, while New Zealand declined. Chipmakers surged after Broadcom offered to buy competitor Qualcomm for $103 billion, which if completed would be the largest tech acquisition ever. Reports that Sprint's owner, Japanese conglomerate SoftBank, might buy cable company Charter hammered shares of telecom giants AT&T and Verizon, which might face tougher competition. Sellers of household goods slumped on weak quarterly results from CVS Health and food distributor Sysco. Twenty-First Century Fox and Disney both climbed after a report Disney might buy Fox assets.
The S&P's 500 index rose 0.1percent to 2,591.13. The Dow Jones industrial average added less than 0.1percent to 23,548.42. The Nasdaq composite gained 0.3percent to 6,786.44. A wave of arrests of princes and other officials in what the Saudi leadership says is an anti-corruption crackdown sent shockwaves through global oil markets, pushing prices to two-year highs. Saudi Arabia is the world's largest exporter of oil. Energy companies jumped and drilling companies making some of the biggest gains. Skeptics of the sweep say it targets potential rivals or possible critics of Crown Prince Mohammed bin Salman, who heads the anti-corruption committee that was formed late Saturday shortly before the arrests.
South Korea was deploying more than 15,000 officers as critics and supporters of Donald Trump planned rallies during the American president's visit to Seoul. Many South Koreans are concerned that Trump's fiery rhetoric on North Korea, which has included threats of military options, is raising risks of war on the Korean Peninsula. Trump is on a 12-day tour of Asia. Before leaving Tokyo for Seoul, the president said on Twitter he and South Korean President Moon Jae-in "will figure it all out" when it comes to North Korea. Benchmark U.S. crude declined 10 cents to $57.25 per barrel in electronic trading on the New York Mercantile Exchange. The contract surged $1.70 on Monday to close at $57.35. Brent crude, used to price international oils, lost 14 cents to $64.13 in London. It soared $2.20 the previous session to $64.27. The dollar climbed to 113.88 yen from Monday's 113.71. The euro declined to $1.1608 from $1.1612.
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