Asian stocks climb as oil bounces, stimulus hopes rise

OIL PRICES: U.S. crude gained 54 cents to $32.73 per barrel in electronic trading on the New York Mercantile Exchange.

Crude oil prices tumbled 4 percent on persistent worries about oversupply and profit-taking, reversing early gains.

In late-morning trades, the benchmark S&P/ASX200 Index is adding 56.30 points or 1.15 percent to 4,972.30, off a high of 4,986.70 earlier.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.5 percent, putting further distance between a four-year low plumbed last week.

Mining stocks are mixed.

E-mini futures on the Standard & Poor’s 500 Index fell 0.1 percent after the underlying measure jumped 2 percent Friday, with energy and raw-material companies leading gains to post their first weekly advance this year.

The kiwi advanced 0.4 percent to 65.20 United States cents yesterday and the Aussie rose 0.3 percent to 70.21 USA cents.

Tokyo stocks rose Monday, extending a global rally as investors bet on the possibility that central banks will unleash more stimulus to bolster hard-hit financial markets.

Supplies remain high around the world as analysts continue to slash their outlook on the oil price, though industry leaders have remained bullish on a price rise.

Sentiment got a boost as European Central Bank President Mario Draghi said it would review its policies in March and could boost its stimulus. A weaker yen helps the competitiveness of Japanese exporters. Sharp is lower by more than 3 percent, while Panasonic is adding 0.4 percent.

Market heavyweight Fast Retailing is declining more than 1%, while SoftBank is adding more than 2%.

The oil price staged its biggest two day rally in over seven years at the end of last week, topping off a week of volatility that saw the price of a barrel of Brent crude slip to 12 year lows of just $27.14. Sumitomo Realty & Development is losing nearly 3% and TDK Corp.is declining more than 2%. The December trade surplus of 140.2 billion yen ($1.2 billion) compared with a deficit of 379.7 billion yen in November and a deficit of 665.6 billion yen in December 2014.

The US dollar fell against the New Taiwan dollar on Friday, shedding NT$0.133 to close at NT$33.705, down from NT$33.742 on Friday last week, as traders reacted to the strength of other regional currencies and bought into the local currency throughout the session, dealers said. New Zealand and Indonesia are also in positive territory. A gauge of Australian business confidence is due, while Malaysian markets are closed for a holiday. Early buying interest was partly generated in reaction to strength in the overseas markets and a surge in crude oil prices.

The major European markets also showed substantial moves to the upside on Friday. But share prices have rebounded on speculation that the prolonged weakness in demand may lead the central bank to opt for further monetary easing at a two-day policy meeting that starts Thursday.

Crude, recently under pressure from a global glut, jumped as harsh winter weather on the U.S. East coast boosted demand for heating oil.