Asian markets opened with gains despite negative cues from the U.S. The dollar extended its winning streak to six straight sessions, while crude dropped. Markets in China remain shut on account of a holiday.
Renewed Rate Hike Speculation
The S&P 500 index dropped 0.3 percent on Monday after an expansion in U.S. manufacturing triggered renewed speculation of a Federal Reserve rate hike this year.
The Institute for Supply Management's manufacturing index increased to 51.5 in September compared to 49.4 in August. The probability of a Fed rate hike by December rose to 61 percent, up 10 percentage points from a week earlier, according to futures rates tracked by Bloomberg.
Dollar Rises, Yen Falls
The dollar meanwhile rose to its highest level in more than a week buoyed by the positive manufacturing data. The Japanese yen weakened for the sixth day, extending its longest losing streak since August.
Oil Stumbles
Oil halted four days of gains ahead of U.S. stockpiles data. Crude inventories increased 1.75 million barrels last week, after four weeks of decline, according to a Bloomberg survey. Official U.S. government stockpiles data will be released later today.
Production in Libya, one of the Organisation of the Petroleum Exporting Countries (OPEC) exempt from an output cut, rose to 5 lakh barrels per day and is expected to rise further, according to an official from a state oil company.
West Texas Intermediate crude for November delivery dropped 0.59 percent to $48.52 per barrel as of 7:00 a.m., after gaining almost 9.5 percent in the last four sessions.
Quiet Start?
The SGX Nifty index traded little changed at 8,787 as of 7:05 a.m. indicating a quiet start for Indian equities ahead of the Reserve Bank of India's monetary policy decision. Economists are split on whether the central bank will cut rates in Urjit Patel's first policy review as governor.
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