Asian markets: China Shanghai Composite slips more than 3% following end to Kuwaiti oil strike

Kedar Grandhi

Asian stock market indices were trading mixed on 20 April, 2016

Reuters

While Asian stock market indices were trading mixed on Wednesday, 20 April, China's Shanghai Composite Index was down 3.70% at 2,930.16 at 5.26am GMT. This followed end to a three-day strike by Kuwaiti oil workers.

Nomura Holdings, the Japanese financial holding company, advised investors to keep away from China's market. "We are nearing the point where things are as good as they get for the first half of 2016: China's growth is stabilising, so is the renminbi exchange rate to the US dollar and capital outflows, while consensus forecasts show low likelihood of a June Fed rate hike."
"In coming months, rising default among private and state-owned enterprises credit and closure of zombie companies as part of supply-side reforms, could raise headline risk," Nomura added.
Indices in the rest of Asia traded as follows on 20 April at 5.39am GMT:

Country	Index	Price	Up/Down	%Change
Hong Kong	Hang Seng Index	21,150.94	Down	1.33%
Japan	Nikkei 225	16,935.84	Up	0.36%
South Korea	KOSPI	2,010.80	Down	0.03%
India	CNX Nifty	7,879.85	Down	0.44%
Australia	S&P/ASX 200	5,206.30	Up	0.34%

Meanwhile, overnight (19 April), the Dow Jones Industrial Average closed at 18,053.60, up 0.27%, while the FTSE 100 closed higher by 0.82% at 6,405.35.
Among commodities, oil prices declined after the end to the Kuwait oil strike. The news reduced the risk appetite of investors as it means there will be an increase in the global supply of oil affecting prices of the commodity. Victor Shum, vice president IHS Energy, an American information company, said: "In the near term we are going to see more downward pressure than upward."
Today (20 April), WTI crude oil was trading 2.82% lower at $39.92 (£27.80, €35.15) a barrel, while Brent was down 2.38% at $42.98 a barrel at 5.47am GMT.