Indian markets likely to stay volatile, Asian shares rebound2 min read . Updated: 07 Jan 2020, 08:09 AM IST
- Overnight, stocks on the Wall Street had erased early losses to end in the black as shares of tech companies climbed
- Oil surrendered some of the hefty gains as many doubted Iran would strike back
Indian stock markets may see continued volatility on Tuesday. Asian shares, meanwhile, rebounded on Tuesday as a day passed without any escalation in tension in the Middle East. Overnight, stocks on the Wall Street had erased early losses to end in the black as shares of tech companies climbed.
Oil surrendered some of the hefty gains as many doubted Iran would strike back in a way that would disrupt supplies, and its own crude exports. Brent crude futures traded at $68.91 a barrel, having been as high as $70.74 at one stage, while US crude fell 32 cents to $62.95.
Gold held firm at $1,563.50, after scaling a near seven-year peak of $1,579.72 overnight.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3%, after a 0.7% drop in the previous session. Japan's Nikkei edged up 0.5% and South Korea 0.6%.
Equities had fallen sharply on Monday as Iran and the United States traded threats after an US air strike killed a top Iranian commander.
The mood calmed a little as the session passed with no new aggression. Instead there was much confusion when the US military wrote to Iraq on Monday saying it would pull out of the country, according to a letter seen by Reuters. Yet US Defense Secretary Mark Esper told Pentagon reporters that no decision had been made and the military said the letter was only a poorly worded draft.
Wall Street chose to hope for the best and the Dow rose 0.24%, while the S&P 500 gained 0.35% and the Nasdaq 0.56%.
Back home, in a tacit acknowledgment of the depressed sentiment in the country, Prime Minister Narendra Modi on Monday reached out to India Inc., seeking its help to revive the economy.
South America’s Synergy Group has submitted a fresh bid for Jet Airways (India) Ltd which was grounded in April, the Brazil-headquartered group’s legal adviser said.
“I am pleased to inform you that today (Monday) Synergy has presented a fresh EoI (expression of interest) to purchase Jet Airways," said a statement from Antonio Guizzetti, president of Guizzetti and Associates. The Washington-based law firm is advising Synergy, led by South American tycoon Germán Efromovich.
Meanwhile, the calmer mood saw the yen lose much of its safe-haven gains, with the dollar bouncing to 108.37 yen from a low of 107.75 hit on Monday. The euro edged up to $1.1195, but faces stiff chart resistance around $1.1240, while sterling made gains to $1.3170 on better economic data at home.
Against a basket of currencies, the dollar had drifted off to 97.618 but stayed above the recent six-month trough of 96.355.
(Reuters contributed to the story)