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- Asian shares drop on weak data from China
- Most markets in the Middle East closed lower on Sunday
- Brent prices retreat, U.S. oil prices edge higher
- Dollar firms, gold retreats
Global markets
Asian shares dropped in early trading on Monday, as investors weighed the impact of the trade dispute between the United States and China, as well as weak economic data from Beijing.
China’s November retail sales grew at their weakest pace since 2003 and industrial output rose the least in nearly three years.
Investors are now looking to a major speech by President Xi Jinping on Tuesday to mark the 40th anniversary of China’s reform and opening up.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent in early Monday trade, led by losses in China and Hong Kong. The CSI 300 of Shanghai and Shenzhen share index dropped 0.9 percent.
On Wall Street on Friday, the Dow Jones Industrial Average fell 496.87 points, or 2.02 percent, to 24,100.51, the S&P 500 lost 50.59 points, or 1.91 percent, to 2,599.95 and the Nasdaq Composite dropped 159.67 points, or 2.26 percent, to 6,910.67.
Japan’s Nikkei rose 0.8 percent on Monday, despite worries on global growth.
“The Japanese market priced in negative news in advance,” Toru Ibayashi, executive director of Wealth Management at UBS Securities Japan, told Reuters. “The market seems to be digesting concerns about global growth and some of such worries have been priced into the market for now.”
Middle East markets
Most stock markets in the region dropped on Sunday, tracking a retreat in global markets and oil prices on Friday.
In Dubai, the index closed 1.6 percent lower with shares of Emaar Properties dropped 3 percent and DAMAC Properties fell 2.9 percent, as property shares lost momentum after last week’s gains.
Abu Dhabi’s index dropped 0.6 percent as First Abu Dhabi Bank dropped 1 percent and Aldar Properties slid 3.7 percent.
The Saudi Arabian index was flat, but telecom operator Zain Saudi Arabia surged 5.8 percent after it announced that it was one of three companies that had agreed with the government to a change in the calculation of their annual royalty fees.
The companies said they agreed the royalty change, and on settling disputed fees to be paid for previous years up to 2017; in return, they will invest in upgrading network infrastructure over next three years.
Qatar’s index added 0.4 percent as a successful debut of Qatar Aluminium Manufacturing Co (QAMCO), boosted the index.
Shares of QAMCO opened at 18.00 riyals, nearly 80 percent above their initial public offer price of 10.10 riyals, shares later eased to 13.01 riyals.
Kuwait’s index gained 0.4 percent, Bahrain’s index was mainly flat and Oman’s index dropped 0.7 percent.
Oil prices
Brent oil prices dropped on Monday as weak Chinese data signalled lower fuel demand in the world’s biggest oil importer.
International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close.
U.S. oil markets held steady after the Baker Hughes energy services firm said on Friday that U.S. drillers cut four oil rigs in the week to December 14, pulling the total count to the lowest since mid-October at 873.
“This, when combined with (expectations) Saudi Arabia is ... to cut exports to the United States to draw down inventory builds (there) should provide a short-term base despite global slowdown fears, which continue to resonate,” Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, told Reuters.
U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent.
Currencies
The dollar was trading near high levels on Monday on safe-haven buying, as investors were concerned about a global economic slowdown.
The dollar index, which measures the greenback against a basket of six major currencies, was little changed at 97.44, below the 19-month high of 97.71 it hit on Friday.
Precious metals
Gold prices dropped on Monday on a stronger dollar.
Spot gold had slipped 0.2 percent to $1,236.30 per ounce by 0107 GMT. Prices on Friday hit their lowest since December 4 at $1,232.39.
U.S. gold futures were down 0.1 percent at $1,239.3 per ounce.
(Reporting by Gerard Aoun; Editing by Shane McGinley)
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