HONG KONG, March 8: Asian markets climbed higher on Tuesday as the surge in world oil prices abated at least temporarily, with members of OPEC holding consultations in the light of turmoil in a swathe of Arab states.
Tokyo`s Nikkei ended the session up 0.19 per cent, or 20.17 points, at 10,525.19, Sydney rose 0.21 per cent, or 10.30 points, to 4,808.20 and Hong Kong climbed 1.71 per cent, or 398.51 points, to 23,711.70.
Shanghai made a late recovery to end up 0.12 per cent, or 3.73 points, at 2,999.94 after officials sought Monday to allay fears of an imminent interest rate hike.
Crude prices slipped after the United States refused to rule out tapping its oil reserves to ease the impact of high oil prices.
The Financial Times also reported that Opec members Kuwait, the United Arab Emirates and Nigeria were joining Saudi Arabia in raising output to calm markets.
Kuwaiti oil minister Sheikh Ahmad Abdullah al-Sabah told journalists that members of the Organisation of the Petroleum Exporting countries were holding consultations over the oil market, but denied Kuwait had increased production.
We are in consultation but have not yet decided which direction,” we are heading, he said when asked if Opec was discussing whether to raise production.
New York`s main contract, light sweet crude for April delivery, fell 70 cents to $104.74 per barrel in Asian trade, while Brent North Sea crude for April dropped 64 cents to $114.40.
Risk aversion is likely to be the dominant theme until there is reasonable certainty that oil prices can retreat to $90 or below, Ric Spooner, chief market analyst at CMC Markets in Sydney, told Dow Jones Newswires.
The threat of a permanent rise in oil prices has hit at a time when equity markets were priced on the assumption of solid earnings growth over the next 12 to 18 months.
Oil at over $100 per barrel for any length of time is likely to lead to reduced expectations for consumer discretionary spending and corporate profitability.
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