25th November 2014
Asian shares generally relinquished gains made earlier in the week today (November 25th), with trading subdued ahead of anticipated negativity at this week's Organization of the Petroleum Exporting Countries (OPEC) meeting.
Yesterday, the region's stocks climbed to multi-year highs on surprise news out of China that the central bank would cut interest rates for the fourth time this year - an effort to reduce funding pressure on Chinese companies and promote fresh growth in the world's second-largest economy.
The Hang Seng index closed up 456.02 at 23,893.14 - an increase of almost two per cent - while the Shanghai Composite registered gains of 1.85 per cent to 2,532.88, its highest since 2011.
As of 08:00 GMT today, however, the Hong Kong benchmark was down 0.21 per cent. Stocks on the mainland hit another three-year peak, but MSCI's broadest index of Asia-Pacific shares outside Japan posted a decline of 0.3 per cent.
In a note to investors seen by Reuters, Melbourne-based IG Markets strategist Stan Shamu wrote: "Yesterday's euphoric reaction to China's easing measures has proved to be short-lived as equities around the region experience some downside today."
Japanese shares bucked the trend, however. The Nikkei 225, which had been closed on Monday for a holiday, played catch-up in today's session and added 0.3 per cent in light of the China rate cut. This was despite a stronger yen, which usually weighs on Tokyo stocks because it reduces repatriated earnings for exporters.
Markets worldwide are subdued at present in anticipation of this week's OPEC meeting, at which stakeholders are expected to respond to rapid growth in non-OPEC oil production by limiting a potential output cut.
This will increase downward pressure on the value of oil, with some commentators suggesting that Moscow might in turn cut its own crude output in a bid to keep prices high.
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