Asia Petrochemical Shares Rise; Crude Oil Slips on Demand Worries
2020-06-01    [Source:ICIS]
share:

PUdaily, Shanghai —— SINGAPORE (ICIS)--Asian petrochemical shares rose on Monday after US President Donald Trump stopped short of introducing new sanctions on China over its new security law in Hong Kong.

 

    Gains were capped by fresh data showing a further slowdown in factory activity across most of Asia in May as well as concerns over the riots happening in major cities in the US over the weekend.

 

    At 03:00 GMT,  Mitsubishi Chemical was up by 0.28% in Tokyo, LG Chem rose 1.66% in Seoul and Formosa Petrochemical Corp was 2.74% higher in Taipei.

 

    Japan's Nikkei 225 Index was up more than 1%, South Korea's KOSPI Composite Index rose by 1.31% and Singapore Straits Times Index was up by 1.55%.

 

Company/Stock Exchange % Change
Nikkei 225 (Tokyo) 1.18%
Asahi Kasei Corporation 0.66%
JXTG Holdings, Inc -0.48%
Mitsubishi Chemical Holdings Corporation 0.28%
Mitsui Chemicals, Inc -0.45%
Hang Seng Index (Hong Kong) 3.20%
Sinopec Shanghai Petrochemical Company Limited 1.57%
PetroChina Company Limited 1.88%
KOSPI Composite Index (Seoul) 1.31%
OCI Company Ltd 0.25%
SK Innovation Co, Ltd 4.64%
LG Chem, Ltd 1.66%
Lotte Chemical Corporation 0.80%
Hanwha Corporation 1.24%
TSEC weighted index (Taipei) 1.39%
Formosa Petrochemical Corporation 2.74%
Nan Ya Plastics Corporation 1.43%
Formosa Chemicals & Fibre Corporation 1.81%
STI Index (Singapore) 1.55%
Wilmar International Limited 0.50%
Olam International Limited 2.10%
FTSE Bursa Malaysia KLCI (Kuala Lumpur) 1.08%
SSE Composite Index (Shanghai) 1.67%
Jakarta Composite Index 0.79%
PT. Chandra Asri Petrochemical Tbk 0.34%

 

    Crude oil prices were lower on demand worries following riots in the US but expectations that OPEC will soon extend or issue deeper production cuts  capped losses.

 

$/bbl (As of 03:22 GMT) Last Price % Change Net Change Close High Low
August Brent 37.7 -0.37% -0.14 37.84 38.31 37.33
July US WTI 35.36 -0.37% -0.13 35.49 35.9 34.76

 

    OPEC and its allies are scheduled to meet on 9-10 June but the meeting could be brought forward to facilitate oil sales for countries such as Saudi Arabia, Kuwait and Iraq, according to media reports.

 

    In a widely anticipated speech on China last Friday, Trump had said that the US would begin the process of stripping some of Hong Kong’s privileged trade status.

 

    The US impose sanctions against Chinese and Hong Kong officials “directly or indirectly involved” in eroding Hong Kong’s autonomy, Trump said.

 

    "Although US President Trump promised ‘strong’ and ‘meaningful’ actions against China for its proposed new security law in Hong Kong, the lack of specific measures and timelines in his Friday’s speech generated some relief," said Singapore-based UOB Global Economics & Markets Research.

 

    Trump also said the US will terminate its relationship with the World Health Organisation (WHO).

 

    Investors are also keeping an eye on riots in major US cities sparked by the death of African-American George Floyd while in police custody on 25 May in Minneapolis, Minnesota. Curfews were ordered across the country.

 

    Equity markets in Asia are also mulling over fresh data which showed a further slowdown in manufacturing activity across the region.

 

    China's official manufacturing purchasing managers' index (PMI) fell to 50.6 in May from 50.8 in April as external demand continued to remain weak following the coronavirus outbreak.

 

    "The key takeaway from May’s data was the rebound of demand," said Singapore's OCBC Bank in a note.

 

    New orders rebounded from 50.20 to 50.90 while new export orders also rose. Raw material input prices jumped to 51.60 from 42.50 due to rebound in commodity prices, official data showed.

 

    In Japan, South Korea and Taiwan, private manufacturing PMI surveys showed factory activity weakening in May.

Reprinted statement: This article is reprinted from other website, which only represents the opinions of the author and it does not represent the stand of this website. Please notify if violating the original author's copyright and we will remove it immediately.

About Us  |  Feedback  |  Clients  |  Contact
Tel: 0086-21-61250980 E-mail: info@pudaily.com Fax: 0086-21-61159277
© 2007 Suntower Consulting Limited.  All Rights Reserved  沪ICP备07503201号 gs沪公网安备31011202002186号