Market and product

Asian petrochemical shares were mixed on Wednesday amid lingering worries over trade tensions between the US and China, while oil prices rose on optimism that the continued easing of lockdowns will boost demand.

At 03:00 GMT, Sinopec Shanghai Petrochemical was up by more than 1% in Hong Kong, LG Chem slipped by 0.42% in Seoul and Chandra Asri Petrochemical was down by 1.47% in Jakarta.

The Hong Kong Hang Seng Index rose by 0.6%, South Korea's KOSPI Composite was up by 0.83% while the Jakarta Composite Index slipped by 0.16%.

Financial markets in Japan and Thailand are closed for public holidays.

"Asian markets may trade with a cautious tone this morning as China’s markets reopen today with the shadow of US-China bilateral tensions re-emerging after US president Trump blamed China for Covid-19," Singapore's OCBC Bank said in a note.

Overnight, US and European chemical stocks rose along with oil futures and stock markets, with investors optimistic that the worst of the pandemic is over.

"Upside momentum is likely to maintain for now as optimism surrounds the reopening of various economies," OCBC said.

Investors will now eye key employment report from the US due later on Wednesday which will likely register an unprecedented 21m drop in private payrolls in April, compared with the 27,000 fall in March.

"The details of the report would spell out the extent of the economic hit on companies of different sizes, with smaller firms likely to be disproportionately hurt," Singapore's UOB Global Economics & Markets Research said.

Oil extended its recovery run on hopes that OPEC+ production cuts which came into effect on 1 May will trim the supply glut while demand will be gradually underpinned as economies tip-toed towards reopening.

WTI crude rose for a fifth day on Tuesday, jumping $4.17/bbl or 20.4% to settle at $24.56/bbl while Brent crude topped $30/bbl for the first time since 15 April. - ICIS-