Market and product

Asian petrochemical shares were mixed while oil prices rose on Tuesday on hopes of a quick global economic recovery as investors await further clues on policy measures in the US.

At 03:12 GMT, Asahi Kasei Corp was down by more than 2% in Tokyo, PetroChina Co rose by more than 1% in Hong Kong and LG Chem fell by 1.38% in Seoul.

Japan's Nikkei 225 slipped by 0.64%, Hong Kong's Hang Seng Index was up by 1.09% and Singapore's Straits Times Index rose by more than 1%.

Investors are now eyeing outcome of the US Federal Reserve's two-day policy meeting, which ends on Wednesday.

Overnight, most US-listed shares of chemical companies rose following Friday's surprising jobs report and news of easing lockdowns.

Risk appetite in Asian markets is being weighed down by the World Bank's latest warning of a deeper global recession.

The World Bank late on Monday said that global GDP this year will contract by 5.2% - the deepest global recession in eight decades despite unprecedented policy support.

Fresh tensions between the two Koreas are also keeping equities investors wary.

North Korea threatened last week to shut communication lines with South Korea unless the latter stops defector groups from sending anti-government leaflets across the border.

Oil prices rose on optimism that the easing of coronavirus-related lockdowns will boost demand for gasoline.

Overnight, crude prices fell on news that Saudi Arabia and its Gulf allies - Kuwait and the UAE - will end their voluntary production cuts of additional 1.18m bbl/day in July.

In June, the total global supply cuts stood at almost 11 bbl/day, which had helped “bolster the current oil bull run”, Singapore's OCBC Bank said in a research note.

For next month, the output cut will be 9.7m bbl/day or 10% of total supply as agreed on 6 June between OPEC and its allies, including Russia. This meant that the group would maintain reduced production levels adopted in May and June. - ICIS-