(Correct milestone for oil prices in first paragraph from
six-month to four-month)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Oil prices surge on fears of global supply disruption
* Safe haven gold, Japanese yen rise, stock futures slip
* Japan markets closed for public holiday, liquidity seen
thin
By Swati Pandey
SYDNEY, Sept 16 (Reuters) - Oil prices surged to four-month
highs on Monday while Wall Street futures fell and safe-haven
bets returned after weekend attacks on Saudi Arabia's crude
facilities knocked out more than 5% of global oil supply.
U.S. crude futures CLc1 were last up 11% at $61.10 a
barrel, coming off highs on expectations other global oil
suppliers would step in to lift output. Brent crude LCOc1
soared 13% at $68.06 after earlier rising to $71.95.
Yemen's Iran-backed Houthi rebel group had claimed
responsibility for the attack, which hit the world's biggest
oil-processing facility but a senior U.S. official told
reporters on Sunday that evidence indicated Tehran was behind
it. The attacks heightened investor worries about the
geopolitical situation in the region and worsening relations
between Iran and the United States.
Those fears powered safe-haven assets, with prices for gold
XAU= climbing 1% in early Asian trade to $1,503.09.
Moves in Asian share markets were small, however, with Japan
shut for a public holiday.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was a tick lower at 515.4. Australian shares
were down 0.1% while South Korea's KOSPI .KS11 was a tad
higher.
E-Minis for the S&P 500 ESc1 were off 0.4% while those for
the Dow 1YMc1 eased 0.3%. "If risk appetite collapses due to fears of worsening middle
east tensions in the wake of any retaliation to the drone
attacks, some emerging markets could face a double whammy of
pressures," said Mitul Kotecha, Singapore-based senior emerging
markets strategist at TD Securities.
"In Asia, the most risk sensitive currencies are Indian
rupee INR=D3 , Indonesian rupiah IDR=D3 and Philippine peso
PHP=D3 ."
BONDS AND CURRENCIES
Among major currencies, the Saudi news pushed the yen JPY=
up 0.4% to 107.64 per dollar while the Canadian dollar CAD=D3
rose 0.5% in anticipation of higher oil prices.
The euro EUR=D3 was little moved near a three-week top
while the pound GBP=D3 hovered near Friday's two-month highs.
That left the greenback down 0.15% at 98.105 against a basket of
six major currencies .DXY .
The risk-sensitive Australian dollar was down 0.5% against
the yen AUDJPY= , snapping nine straight days of gains. The
kiwi dollar NZDJPY=R slipped to a one-week low on the yen.
"One immediate question this (attack) poses for bond markets
is whether a further rise in the inflation expectations
component of bond yields - which have proved historically
sensitive to oil prices - will give this month's sharp bond
market sell-off fresh impetus," said NAB analyst Ray Attrill.
"Or will safe haven considerations dominate to drive yields
lower? Watch this space."
In early Asian trading, futures for U.S. 10-year Treasury
notes TYv1 rose 0.3%, indicating yields may slip when cash
trading begins. Global bonds were sold off last week, sending yields higher,
led by a broader risk rally on hopes the United States and China
would soon end their long trade war. Better-than-expected U.S.
retail sales data also boosted sentiment.
Chinese data for industrial production, retail sales and
fixed asset investment will be released later on Monday, which
could help set the tone for this week.
Investors also await the outcome of the U.S. Federal
Reserve's policy meeting on Wednesday at which it is widely
expected to ease interest rates and signal its future policy
path. FEDWATCH
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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Sam Holmes)