Asian stocks rise as oil falls on UAE's OPEC exit

Stocks across Asia mostly advanced on Wednesday despite losses on Wall Street, while oil prices declined after the United Arab Emirates announced plans to leave OPEC, dealing a blow to the influential oil group.

U.S. futures edged higher, while markets in Japan were closed for a holiday, News.Az reports, citing AP.

Elsewhere in the region, South Korea’s Kospi rose 0.3% to 6,657.40, while Hong Kong’s Hang Seng climbed 1.4% to 26,029.02. The Shanghai Composite index also gained 0.3%, reaching 4,091.01.

Australia’s S&P/ASX 200 slipped 0.3% to 8,689.50, while Taiwan’s Taiex fell 0.6%. India’s Sensex, however, advanced 0.4%.

Oil prices moved lower, with Brent crude oil for June delivery falling 0.5% to $110.71 per barrel. July Brent declined 0.6% to $103.74. Prices had hovered near $70 per barrel before the conflict began in late February. Meanwhile, benchmark U.S. crude dropped 0.6% to $99.32 a barrel.

The UAE’s exit from OPEC, expected to take effect on Friday, has been closely monitored by energy markets. The group produces roughly 40% of global oil supply, and the UAE is among its largest producers. In recent years, it has resisted OPEC production limits, seeking to increase its oil exports.

Investors are also awaiting a policy decision from the Federal Reserve on interest rates later Wednesday.

On Tuesday, Wall Street pulled back from record highs. The S&P 500 declined 0.5% to 7,138.80, while the Dow Jones Industrial Average slipped 0.1% to 49,141.93. The Nasdaq Composite dropped 0.9% to 24,663.80.

Artificial intelligence-related stocks led the downturn. Broadcom fell 4.4%, Nvidia lost 1.6%, and Micron Technology declined 3.9%. Major tech firms including Alphabet, Amazon, Microsoft, and Meta Platforms are set to report quarterly earnings on Wednesday.

In currency trading, the U.S. dollar edged up to 159.63 Japanese yen from 159.62 yen, while the euro slipped slightly to $1.1708 from $1.1712.

The yield on the U.S. 10-year Treasury note remained steady at 4.35%.

News.Az 

By Nijat Babayev