Most Asian markets rise as investors brush off Italian referendum vote

While most Asian stock market indices were trading higher on Tuesday (6 December), the Shanghai Composite was down 0.12% at 3,201.02 as of 5.34am GMT. This followed the Wall Street recording gains overnight amid positive US services data and amid investors putting behind them the Italian referendum vote.

There was a bearish trend in the Asian stock markets on Monday as the euro fell to its 20-month lows amid the Italian referendum. The majority of Italian voters had rejected the constitutional reforms introduced by Prime Minister Matteo Renzi, who eventually resigned. However, now investors are said to have put this vote behind them. They are said to have judged the selloff post referendum as overdone.

"Global risk sentiment roared back after falling prey to the initial Renzi fallout and whatever negatives Italy creates for the eurozone, yesterday was not the time for a euro implosion," Stephen Innes, senior trader at online FX platform, OANDA was quoted as saying by Reuters.

Another contributing factor is said to have been the services sector report released on Monday. This showed that activity in this sector had hit a one-year high in November, showing further strength in the American economy and in turn boosting investors' confidence.

Indices in the region were trading as follows at 6.06am GMT:

On 5 December, the FTSE 100 closed 0.24% higher at 6,746.83, while the S&P 500 Index closed 0.58% higher at 2,204.71.

Among commodities, oil prices that surged last week over the Opec oil output deal was trading in the red. As of 6.10am GMT, WTI crude oil was trading lower by 0.98% at $51.28 (£40.26) a barrel, while Brent crude was trading 0.78% lower at $54.51 a barrel.