Asia shares follow Wall Street as oil prices rise

Asian equities broadly followed Wall Street on hopes of US economic resilience, while oil futures climbed after Saudi Arabia announced production cuts in an effort to prop up crude prices.

Japan’s benchmark Topix stock index rose 1.3 per cent, Australia’s S&P/ASX 1.1 per cent and Hong Kong’s Hang Seng rose 0.7 per cent on Monday.

Gains for Asia-Pacific shares came after a rally on Wall Street on Friday that saw the S&P 500 gain 1.5 percent and the tech-focused Nasdaq Composite gain 1.1 percent after US jobs data beat expectations in May. showed an increase of more than

In commodities markets, crude oil briefly jumped after Saudi Arabia said it would cut oil production by 1 million barrels a day to prop up prices. The state energy minister said the cut would initially be for July but could be extended.

International benchmark Brent crude rose 3.6 per cent to close at $76.96 a barrel, up 1 per cent. West Texas Intermediate, the US marker, pulled back as much as 4.6 percent at $72.57, up 1.2 percent.

Chinese equities underperformed a broader trend in markets, with the CSI 300 index of Shanghai- and Shenzhen-listed shares after closing 1.4 percent higher on Friday.

Losses for China shares came despite a positive economic reading from the Caixin services purchasing managers’ index, which indicated sharp growth for the country’s services sector in May.

Official media in China also called on investors to have faith in the country’s domestic stock market, with the state-run Economic Daily suggesting that “clear-headed understanding, conviction, determination and patience” are “key responsibilities of all market participants”. Were. ,

Futures markets dragged US stocks down at the open on Wall Street later in the day, with the S&P 500 shedding 0.1 percent. The FTSE 100 was expected to rise 0.1 per cent.