Stocks in Asia Rangebound as Oil Extends Loss

Shares in Asia struggled for traction and currencies were muted in holiday-thinned trading Thursday. Chinese developers rallied on signs of more government support, Bloomberg reported.

European equity futures were flat, while shares in Hong Kong and China advanced. Japanese markets are closed for a holiday.

The euro and yen edged higher as the dollar surrendered Wednesday’s gains. Oil dropped for a second day after the surprise delay to the upcoming OPEC+ meeting dented hopes that the cartel will intervene to tighten supplies.

Country Garden Holdings Co.’s shares and bonds surged in Hong Kong following news that Beijing included the builder in a draft list of 50 developers eligible for financial support, the latest move to plug an estimated $446 billion gap in funding needed to ease the housing crisis. A gauge of property stocks rallied 7%, set for its best week since early September.

The S&P 500 rose 0.4% Wednesday ahead of the Thanksgiving holiday, resuming a rally that’s lifted the index around 8% in November, on track for its best month since July last year. US futures were marginally higher. Trading in Treasuries is closed on Thursday due to holidays in Japan and the US.

Despite the overnight rise in Treasury yields, the longer-term downward trend for rates will help stocks and bonds rally into 2024, said Audrey Goh, Head of Asset Allocation and Thematic Strategy for the Wealth Management Group at Standard Chartered Bank.

“We do expect the stock market rally to continue,” Goh said in an interview on Bloomberg Television. “If you look at inflation, that clearly has moderated so that will allow the Fed to stand pat. Our expectation is that policy rates have peaked.”

Brent crude sank below $81 a barrel after a volatile session on Wednesday that saw prices swing by more than $4, while West Texas Intermediate was near $76.

“On the macroeconomic data, I don’t see enough positive signals to give me the confidence of a booming market next year,” Carol Nakhle, Chief Executive Officer of Crystal Energy, said on Bloomberg Television. “Even with oil demand forecast, we see today a big difference between what the International Energy Agency is expecting for 2024 and what OPEC is expecting.”

Oil has been buffeted in recent weeks by indications that non-OPEC output is growing, prompting speculation that the OPEC and its allies would decide to extend production cuts or possibly deepen them. Amid signs of abundant supplies, Europe is contending with a glut due to a combination of lackluster demand and an influx of US cargoes.

Elsewhere in Asia, Indonesia’s central bank is expected to keep its benchmark interest rate steady. Data set for release include Taiwan industrial production and Singapore consumer prices.

Origin Energy Ltd. will ask investors to vote on a revised A$19.1 billion ($12.5 billion) offer from a Brookfield Asset Management Ltd.-led group next month, postponing a planned meeting after proxy results showed the existing proposal would fail.