Asian markets: China Shanghai Composite gains as oil prices decline
Asian stock market indices were trading in a mixed pattern on 11 May, 2016Reuters

While Asian stock market indices were trading in a mixed pattern on 11 May, China's Shanghai Composite Index was up 0.34% at 2,842.13 as of 5.55am. This followed a positive close on Wall Street and Footsie overnight.

Wall Street posted its biggest single day rise in two months, but Asian investors seemed to be concerned over the absence of signs indicating a recovery in China and other emerging markets. Hirokazu Kabeya, chief global strategist at Daiwa Securities, said: "I'd think the markets are supported by lack of negative news flows. It's not that we have clear reason to be positive about the global economy but there may be a bit of unwinding in excessively pessimistic bets."

Investors also seemed concerned over the fresh strength in the yen against the dollar. Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, opined that this was because of short covering by traders. "While we are surprised that more Japanese officials are trying to talk up the currency at 108-109 than 106-107, this could be a strategic move to give speculators reason to cover their shorts at a time when the dollar/yen was struggling to extend its losses below 106," she added.

Meanwhile, indices in the rest of Asia traded as follows on 11 May at 6.05am GMT:

CountryIndexPriceUp/Down%Change
Hong KongHang Seng Index20,108.80Down0.66%
JapanNikkei 22516,572.26Up0.04%
South KoreaKOSPI1,983.04Up0.03%
IndiaCNX Nifty7,881.30Down0.08%
AustraliaS&P/ASX 2005,378.50Up0.67%

Meanwhile, overnight (10 May), the Dow Jones Industrial Average closed at 17,928.35, up 1.26%, while the FTSE 100 closed at 6,156.65, up 0.68%.

Among commodities, oil prices which got a boost on 10 May amid supply concerns in Canada, Nigeria and elsewhere, retreated on 11 May. WTI crude oil was trading 0.58% lower at $44.40 (£30.70, €38.98) a barrel, while Brent was trading 0.51% lower at $45.29 a barrel at 6.15am GMT.