TOKYO / SHANGHAI (Reuters) – The oil price eased slightly on Tuesday, one day after reaching the 3/2 high, when investors agreed on President Donald Trump's decision to remove the US from the Iran nuclear Withdraw the deal. a step that could disrupt the global oil supply.
Asian equities up, supported by technology stocks overall, optimistic outperformance overcomes the weakness in the global smartphone market and concerns over more regulation.
U.S. West Texas Intermediate (WTI) crude oil futures rose more than $ 70 on Monday for the first time since November 2014, more than 18 percent above February's low.
On Tuesday, some of these oil price gains were reduced as traders took profits after Trump announced in a tweet that he would announce his decision on the nuclear deal at 1800 GMT Tuesday.
"The oil market has priced in the likelihood that Trump will withdraw from the nuclear deal with Iran, and if it were to impose sanctions similar to those in the US in 2012, it would likely cause an oil shortage," Tatsufumi said Okoshi, senior commodities economist at Nomura Securities.
Venezuela's oil production increased as Venezuela's oil company PDVSA faced problems.
U.S. Crude oil futures were last traded at $ 69.97 a barrel, 1.1 percent lower than the Monday Rescue Price.
Brent global benchmark crude oil futures stood at $ 75.54 a barrel, down 0.8 percent from a high of $ 76.34 on Monday.
While the prudence in Trump's statement made investors nervous in early trading, technology companies helped generate profits for Asian equities.
MSCI's broadest index for Asia-Pacific equities outside Japan gained 0.6 percent, with information technology stocks up 1.2 percent. The Japanese Nikkei was 0.3 percent higher.
Tech stocks also raised South Korea Kospi index, which rose 0.4 percent.
Some analysts warned that the rally in technology stocks could see a short-term correction as valuations increase.
Yoshinori Shigemi, global market strategist at JPMorgan Asset Management in Tokyo, noted that technology stocks are in an uptrend and take a larger share of the indices as more money flows into the ETF market.
There is currently a "positive feedback loop", but if some sort of unforeseen negative event takes place, "it could turn into a negative feedback loop," he said.
China's blue-chip CSI300 index rose 1.3 percent, according to the White House On Monday, US-China trade talks would continue next week.
On Tuesday, China reported that exports and imports jumped in April and exceeded forecasts, but the news had no impact on the markets.
On Wall Street on Monday, the S & P 500 gained 0.35 percent, boosted by Apple's sixth straight win.
In the currency markets, the dollar largely stuck to the prospect that economic growth in the US, partially supported by Trump's tax cuts and spending, pointed to a further rise in US interest rates.
This prompted investors to buy back the dollars they had sold earlier this year as a result of Trump's protectionist trade policy.
The euro reached a four-month low of $ 1.1997 on Monday, closing at $ 1.1925.
Compared to the yen, the dollar stood at 108.93 yen, little changed from its three-month high of 110.05 yen.
The combination of higher oil prices, a strong dollar and higher US interest rates is risky for some emerging market assets, as it could significantly worsen their trade balance and lead investors to shift funds into more profitable US assets.
"Emerging market currencies are now coping with some of the excessive losses in developed currencies and Asian currencies have also fallen victim to the recent buying impetus of the USD," said Jameel Ahmad, Global Head of FXTM's Currency Strategy & Market Research ,
The JPMorgan Emerging Markets Bond Index reached its lowest level in more than a year.
The Indian rupee reached a 15-month low, while the Indonesian rupee reached its lowest level since December 2015 on Tuesday.
Dhian Karyantono, fixed income analyst at Mirae Asset Sekuritas Indonesia, said the rupiah was weakened after weaker first-quarter growth data.
Indonesia's economy grew 5.06 percent from January to March, compared to 5.19 percent in the previous quarter.
The divergence between developed and emerging countries was also reflected in stock prices. Brazil's Bovespa reached three-month lows, while Germany's Dax reached three-month highs, with Italian equities reaching 8-1 / 2-year highs.
Additional coverage by Gayatri Suroyo in JAKARTA; Arrangement by Richard Borsuk