Overseas Trading: Japan Bucks Falling Crude Futures to Extend Rate-Cut Rally

Falling crude futures and weak manufacturing data hit China and Europe, while Japan continues to surge on Friday's BOJ decision

Feb 1, 2016 at 8:36 AM

Stocks in Asia were mixed today, with Japan's Nikkei settling 2% higher, extending its gains after Friday's surprise rate cut from the Bank of Japan (BOJ). Traders on the mainland reacted to mixed factory data, as China's official manufacturing purchasing managers index (PMI) narrowly missed predictions, while Caixin's manufacturing PMI topped estimates. However, falling crude futures eventually tipped the Shanghai Composite to a 1.8% loss. Meanwhile, Hong Kong's Hang Seng fell 0.5%, and South Korea's Kospi closed 0.7% higher.

Europe is in the red at midday, tracking losses in Brent crude futures. A disappointing reading from Markit's eurozone PMI is also weighing on sentiment, as are losses for big-name banks like Barclays, Credit Suisse, and HSBC. At last check, London's FTSE 100, Germany's DAX, and France's CAC 40 are each trading 1.2% lower.

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