Risk-on grips Asia after OPEC deal, energy stocks rocket

Asian traders cheered OPEC’s first historic output cut deal in eight years, sending energy shares through the roof. The Asian energy index jumped +3.4%, hitting the highest levels since April as oil prices spiked almost 5% on the OPEC deal news.

While a risk-friendly environment weighed on the safe-haven yen and helped push exports-oriented stocks on the Japanese indices higher. Meanwhile, USD/JPY jumps +0.66% to 101.35, as the yen emerges the worst performer so far in Asia.

However, upside appears limited as markets weigh Fed Yellen’s comments, citing that a Fed rate hike remains on track this year. Focus now shifts towards the US macro news and another series of Fed speaks due later in the NA session for further momentum.

Meanwhile, Japan’s Nikkei 225 now rebounds +1.33% to 16,684, the Australian S&P/ASX 200 advances +0.91% to 5.461, while the Chinese equities trade higher , with the benchmark Shanghai Composite index gaining +0.30%, while CSI300 index rises +0.30%. Hong Kong markets gain +0.34% to trade around 23,700 levels.