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- Asian shares surge on U.S.-Mexico deal
- WTI crude futures gain 0.6 percent
- Saudi and UAE stocks outperform the region on Sunday
- Dollar gains, gold drops
Global markets
Asian shares rose on Monday after the United States dropped its threat to impose tariffs on Mexico. The two countries struck a deal on Friday to combat illegal migration from Central America.
MSCI’s index of Asia-Pacific shares outside Japan rose 0.7%, led by strong gains in Hong Kong and Indonesia.
“The deal with Mexico is boosting sentiment while expectations of U.S. rate cuts will be also supporting share prices,” Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management, told Reuters.
“Still, with limited progress seen so far in U.S-China trade talks, the most important issue for markets, stock prices will be able to rise only so much,” he added.
On Friday on Wall Street, the Dow Jones Industrial Average rose 263.28 points, or 1.02%, to 25,983.94, the S&P 500 gained 29.85 points, or 1.05%, to 2,873.34 and the Nasdaq Composite added 126.55 points, or 1.66%, to 7,742.10.
Oil prices
Oil prices rose in early trading on Monday.
According to a Reuters report, traders said crude prices were rising because of statements by the Organization of the Petroleum Exporting Countries (OPEC) de-facto leader Saudi Arabia on Friday saying that the group was close to agreeing extended supply cuts.
Front-month Brent crude futures, the international benchmark for oil prices, were at $63.52 at 0310 GMT, 23 cents, or 0.4%, above Friday’s close.
U.S. West Texas Intermediate (WTI) crude futures were at $54.29 per barrel, 30 cents, or 0.6%, above their last settlement.
“Brent futures continue rising ... after the Saudi Arabian Energy Minister expressed confidence that OPEC+ producers will prolong their output cuts program through the second half of 2019,” Han Tan, analyst at futures brokerage FXTM, told Reuters.
Middle East markets
Middle East markets traded again on Sunday following the long Eid Al Fitr holiday in the previous week.
The Saudi index rose by 2.2% to finish at 8,699 points, its best close since May 9. Al Rajhi Bank rose 3.2%, Saudi Telecom was up 3.4% and Saudi Basic Industries, the index's biggest stock, gained 2.9%.
The Dubai index also rose, firming by 1.2% as property stocks registered strong gains. DAMAC Properties was up 9.3% and Union Properties rose 4.3%.
Abu Dhabi's index dropped 0.95%, on weakness in First Abu Dhabi Bank, which eased by 1.2%.
Qatar's index ended 0.2% down on profit-taking after strong gains before the Eid holiday. Qatar National Bank fell by 1.1%.
Egypt’s blue-chip index EGX30 rose 0.8 percent, Bahrain’s index also added 0.8 percent, Kuwait’s premier market index rose 1.5 percent and Oman’s index edged 0.3 percent higher.
Currencies
The improved investor sentiment helped lift the dollar against the yen 0.15% to 108.38 yen.
Precious metals
Gold prices dropped as the dollar gained.
Spot gold had fallen 0.5% to $1,333.44 per ounce by 0103 GMT. U.S. gold futures were 0.5% lower at $1339.90 an ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
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