Oil prices extended a rally Wednesday after Iran's missile attack on Israel fanned fears of a Middle East-wide conflict, while the Hong Kong market plowed on with its China-fuelled surge with more big gains.

Crude oil cartoon 02102024

Agence France-Presse

<div> </div>HONG KONG - Oil prices extended a rally Wednesday after Iran&#x27;s missile attack on Israel fanned fears of a Middle East-wide conflict, while the Hong Kong market ploughed on with its China-fuelled surge with more big gains.News of the launches rattled US and European traders and sparked a sell-off on most markets, though Asia fared slightly better, with Hong Kong jumping more than six percent as it reopened after a one-day break.Both main crude contracts shot up more than five percent at one point Tuesday after Iran fired dozens of missiles at Israel in response to the killings of Tehran-backed militant leaders.While most were intercepted by air defences before reaching their targets, the move sparked a stern response from Israel and the United States, with Washington saying it was discussing a joint response and warning of &quot;severe consequences&quot;.Israel vowed it would make Iran &quot;pay&quot; for the launch, while Tehran threatened to hit all Israeli infrastructure if attacked.&quot;The burning question is whether Iran&#x27;s missile strike is a one-off response or the start of something much bigger. Most bets lean towards the former, especially with the US stepping in to back Israel,&quot; said independent analyst Stephen Innes.&quot;Iran&#x27;s oil infrastructure could very well be in their crosshairs. Taking a swing at Iran&#x27;s oil lifeline could have far-reaching economic consequences, sparking a severe escalation,&quot; Innes wrote in his &quot;The Dark Side Of The Boom&quot; newsletter.Demand for gold -- considered a go-to in times of uncertainty and turmoil -- pushed the precious metal close to its $2,685 record.All three main indexes on Wall Street ended in the red, with the Nasdaq down more than one percent.But Asia fared a little better.Hong Kong soared more than six percent -- and passed 22,000 points for the first time since February last year -- as traders returned from a one-day break to resume buying beaten-down stocks after China last week began unveiling a raft of economic stimulus measures.The Hang Seng Index has rocketed more than 20 percent over the past seven trading sessions on optimism that Beijing will press on with its stimulus campaign, with developers leading the charge higher as officials target the property sector.Among the standout performers were Agile Group, which soared an eye-watering 105 percent, while Sunac added more than 50 percent and Fantasia more than 80 percent. However, the firms were still at just a fraction of their prices three years ago.Among the measures China has unveiled are interest rate cuts, an easing of home-buying rules and a cut to banks&#x27; reserve requirement ratio -- the amount of cash they must hold in reserve -- allowing them to lend more.Markets were closed in Shanghai and Shenzhen for a week-long holiday, having also zoomed higher before the break.The continued rally in Hong Kong &quot;seems to show that both local and foreign investors remain optimistic about this rebound and that the short-term rally might be sustained&quot;, Kenny Ng, a strategist at Everbright Securities International, told AFP.He warned of a short-term pullback owing to the pace of recent gains, but added: &quot;The strength and comprehensiveness of the central government&#x27;s stimulus this time were beyond expectations.&quot;The cuts to the interest rate and the reserve requirement ratio went beyond the minimum, and the policies were wide-ranging, not only monetary policy but also policies on the property market and capital markets.&quot;There were also gains in Singapore and Manila, while London, Paris and Frankfurt opened higher.But there were losses in Sydney, Seoul, Wellington, Bangkok and Jakarta.Tokyo fell more than two percent, continuing its volatile run after tanking Monday on a strong yen in reaction to Shigeru Ishiba&#x27;s election as head of Japan&#x27;s ruling party.Ishiba, sworn in as prime minister Tuesday, has said he backs the central bank&#x27;s interest rate hikes and was also eyeing possible corporate tax increases.Dealers are also awaiting the release of key US jobs data at the end of the week, hoping for a fresh idea about the state of the economy and the Federal Reserve&#x27;s plans for borrowing costs after last month&#x27;s bumper cut.

Oil prices extended a rally Wednesday after Iran's missile attack on Israel fanned fears of a Middle East-wide conflict, while the Hong Kong market plowed on with its China-fuelled surge with more big gains.

Oil extends rally after Iran attack, Hong Kong soars again | ABS-CBN

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Oil extends rally after Iran attack, Hong Kong soars again

Oil extends rally after Iran attack, Hong Kong soars again

Agence France-Presse

Published Oct 02, 2024 04:25 PM PHT

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