Asia energy firms dive with oil-prices; Trump-Kim summit revives hope
What's the story
Energy firms plunged with oil prices in Asia today after Saudi Arabia and Russia signaled they could lift output, while indications that Donald Trump's summit with North Korean leader Kim Jong-un could be back on provided support to equity markets.
On Friday, Brent sank 3% and WTI fell 4%, and in early Asia business, they were both down a further 2%.
Here's more.
Saudi Arabia, Russia
Saudi Arabia to open taps wider
Both main contracts tanked on Friday after Saudi Oil Minister Khaled al-Faleh said they could open the taps wider in the second half of the year to insure against any supply shocks.
His Russian counterpart Alexander Novak said they had spoken about a two-year-old deal capping production, adding OPEC and other members of the pact would discuss lifting limits next month.
Losses
The losses led to sharp selling in Asian firms
Russia and Saudi's comments come as supply worries increase and demands pick up.
The losses come after crude earlier this month hit levels not seen since November 2014, and led to sharp selling in Asian energy firms.
Sydney-listed Woodside Petroleum was 3.6% down and Inpex dived a similar amount in Tokyo.
CNOOC plunged 3% in Hong Kong, while Sinopec was off more than 2%.
Trump-Kim hopes
Broader markets up by hopes of Trump-Kim summit
Broader markets were mostly up as the oil sell-off was offset by renewed hopes for the Trump-Kim summit after the Trump appeared Friday to do a U-turn 24 hours after canceling the meeting.
Markets fell in Asia Friday after Trump said he refused to meet with Kim.
However, the Saturday meeting of South Korean president Moon Jae-in with Kim put it back on track.
Southeast Asia
Nikkei flat; Singapore, Seoul and Jakarta sharply high
By the break in Tokyo, the Nikkei was flat, Hong Kong added 0.5% and Shanghai gained 0.1%. Singapore, Seoul, and Jakarta were all sharply higher but Sydney fell 0.6% and Manila dipped 0.2%.
On currency markets, the Euro increased despite political uncertainty in Italy, with the news that Italian President Sergio Mattarella had vetoed the nomination of fierce euro-skeptic Paolo Savona as Economy Minister.
Uncertain elections
Possible fresh elections in Italy, a positive move for Euro
While President Mattarella's decision led to the resignation of Prime Minister-elect Giuseppe Conte and could also lead to fresh elections, it was seen as a positive move for the Euro.
However, Ray Attrill, head of foreign-exchange strategy at National Australia Bank in Sydney, said: "We may now be in for an uncertainty ahead of fresh elections (in Italy), assuming that's where we're headed."
Information
Spanish PM Rajoy could face a no-confidence vote
Euro's gains are also being limited by the prospect of upheaval in Spain, where Prime Minister Mariano Rajoy could face a no-confidence vote after his party was found guilty of benefiting from illegal funds in a massive graft trial.