Most Asian stock markets close in the red despite increase in oil prices

Most Asian stock markets ended in the red on Tuesday (16 August) with the Shanghai Composite winding up the day 0.49% lower at 3,110.04 despite positive overnight close on Wall Street and an uptick in crude prices.

The Nikkei index saw the sharpest fall in the region due to an increase in the value of the yen. Analysts said the Japanese currency could further strengthen in the coming weeks as investors were losing confidence in the Bank of Japan's ability to use monetary policy to boost the country's economy.

"What a dollar/yen at 100, or potentially lower, is telling us is the market does not believe that the Bank of Japan is likely to be successful in reflating the economy. This could eventually lead to more extreme policy events down the line, but in the short term, it's quite possible the dollar/yen moves lower rather than higher," Manpreet Gill, head of FICC investment strategy at Standard Chartered Wealth Management, was quoted as saying by CNBC.

Indices in the rest of Asia were as follows on 16 August at 8.55am GMT:

Overnight (15 August), the Dow Jones Industrial Average closed at 18,636.05, up 0.32%, while the FTSE 100 closed at 6,941.19, up 0.36%

Among commodities, oil prices were trading higher amid speculation that oil producing nations may cut production to stabilise crude output and prices. "The Saudis are happy to commit to some sort of Opec-wide supply freeze deal so long as Iran is party to it. And Iran refuses to agree to any deal that will inhibit them from lifting their oil output to pre-sanctions level," Angus Nicholson, a market analyst at brokerage firm IG, said.

While WTI crude oil was trading higher by 0.26% at $45.86 (£35.38) a barrel, Brent crude was trading 0.17% higher at $48.43 a barrel as of 9.04am GMT.