Asian shares ascend with Nikkei headed for best close of 2016
On Thursday, Asian stock markets traded broadly higher, with Japanese Nikkei on track for its highest close this year, after key crude-producing nations signed a deal to drop crude-oil output.
The Nikkei Stock Average NIK managed to grasp 1.1%, hitting 18,513.2 in the midday trading session. Elsewhere, Australian S&P/ASX 200 XJO rose 1%, Hong Kong’s Hang Seng Index HIS leapt 0.5% and Singapore’s Straits Times Index STI added 0.7%.
Notwithstanding much skepticism about the deal, the Organization of the Petroleum Exporting Countries on Wednesday agreed to diminish oil output by 1.2 million barrels a day, thus marking the group’s first concerted effort to slash production since 2008. The given move sent crude prices higher more than 9% overnight.
The OPEC cut represents approximately 1% of global crude output, which will help to reduce a crude glut, which has depressed prices for more than two years.