Asian stocks retreated tracking weak cues from the U.S., where the S&P 500 Index dropped from a record high. Japanese markets resumed trade after a long weekend.
The dollar declined, and the pound fell to a 10-week low. Oil dropped to the $52 per barrel mark while gold climbed for the fifth time in six sessions.
U.S. Stocks Fall
Energy shares dragged U.S. equity markets off their record highs, and the Dow Jones Industrial Average once again drifted away from the 20,000 milestone.
The Dow, which has been stuck in a 250-point range since scaling the 19,900 mark on December 13, fell 76 points in Monday's trade. The S&P 500 Index fell 0.4 percent, while the NASDAQ Composite Index outperformed its peers, rising 0.2 percent owing to a rally in healthcare stocks.
The Bloomberg Dollar Spot Index fell 0.1 percent. The gauge has now lost almost 1 percent since scaling a 14-year high on January 3.
The pound sterling fell to a 10-week low, touching its lowest level since October 28, amidst uncertainty over the U.K.'s future in Europe's single market.
The yen remained steady, gaining 0.1 percent after a 0.8 percent rise on Monday. The Thai baht and Korean won also clocked gains.
Also Read: If U.S. 10-Year Yield Goes To 2.70%, Expect Rupee To Hit 69/$: Bank Of America
Commodities Pullback
Oil fell the most in five weeks on Monday after rising U.S. drilling and inventories offset potential benefits of production cuts from OPEC (Organization of Petroleum Exporting Countries) and other non-member producer nations.
U.S. inventories probably rose 2 million barrels last week, according to the median estimate in a Bloomberg survey. Official government data will be released on Wednesday.
Investors took heart from Kuwaiti Oil Minister Essam Al-Marzouk's statement that OPEC and its partners have already announced 60-70 percent of the promised output cuts. Those comments helped oil stabilize around the $52 per barrel mark, after dropping 3.8 percent on Monday.
Gold rose for the fifth time in six days, taking the precious metal above the $1,180 per ounce mark.
Steady Start?
The SGX Nifty index gained 0.16 percent to 8,261 as of 7:00 a.m., indicating a steady start for Indian equities. Benchmark indices had ended little changed on Monday amidst weakness in the rupee.
Also Read: Indian International Exchange To Go Live On January 16 With New ‘Sensex 50' Index
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
