Global equities rise on oil price boost

kuala lumpur — Global stock markets were mostly higher on Thursday after oil prices hit $50 a barrel for the first time since November.

In early European trading, Britain’s FTSE 100 was up 0.04 per cent at 6,265.09 and France’s CAC rose 0.02 per cent to 4,481.92. Germany’s DAX advanced 0.2 per cent to 10,223.94. Futures augured gains on Wall Street. Dow futures were up 0.8 per cent and S&P futures rose 0.7 per cent.

Benchmark US crude breached the psychological $50 a barrel level after the US government reported a largerthan-expected drop in fuel stockpiles last week. Oil prices have risen since early this year, sparking some concerns prices may not be sustained because underlying macro conditions have not changed proportionally. Brent crude, used to price international oils, added 32 cents to $50.06 a barrel after rising as high as $50.26 earlier.

“In markets, risk sentiment continued to improve. Energy stocks and oil-linked currencies benefited from the rise in oil prices. Equity markets were on a slightly stronger note,” said Mizuho Bank in Singapore.

Japan’s Nikkei 225 index added nearly 0.1 per cent to close at 16,772.46. China’s Shanghai Composite rose 0.3 per cent to 2,822.44 and Hong Kong’s Hang Seng index added 0.14 per cent to 20,397.11. Australia’s S&P/ASX 200 rose 0.3 per cent to 5,388.80. Stocks in Taiwan and South Korea were down.

The dollar fell to 109.71 yen from 109.98 yen. The euro rose to $1.1179 from $1.1143.