Business Live: Asian shares open weak

Live updates from the world of economy, markets, and finance

Asian shares have made a weak open to the day. Chinese shares have traded low despites signs of monetary easing by the Chinese central bank.

SGX Nifty trends suggest the Indian markets may be up for a weak open as well.

Wall Street, in line with yesterday’s rally in Indian markets, ended its first day of trading this new year with a strong rally. Australian shares this morning have followed the same trend.

 

Another round of ‘Operation Twist’ by the RBI

On a review of the current liquidity and market situation and an assessment of the evolving financial conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for ₹ 10,000 crores each on January 06, 2020 (Monday). Read more.

Here’s an explainer on the RBI’s ‘Operation Twist‘: All you wanted to know about Operation Twist

Keerthi Sanagasetti writes: "Operation Twist is the name given to a monetary policy tool that the US Federal Reserve had initiated to influence the prevailing rate of interest in the markets. The tool essentially aims at changing the shape of the yield curve (hence the name — twist) through simultaneous buying and selling of long- and short-term government bonds. In India, the RBI put through its version of Operation Twist on Monday by buying ₹10,000 crore worth of 10-year government bonds while selling four shorter-term government bonds adding up to the same value. The intent is to moderate high long-term interest rates in the market and bring them closer to the repo rate."

Brent jumps nearly $3 after U.S. air strike kills Iran, Iraq officials

* MSCI Asia ex-Japan turns negative, erases early gains

* Senior Iran official killed in U.S. air strike

* Brent crude surges more than 3%

Brent crude futures jumped close to $3 on Friday to their highest since September after a U.S. air strike killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies.

Brent crude futures jumped nearly $3 to hit a high of $69.16 a barrel, the highest since Sept. 17. The front-month Brent March contract was at $68.25 a barrel, up $2.00, or 3%, by 0258 GMT.

U.S. West Texas Intermediate (WTI) crude futures rose $1.76, or 2.9%, to $62.94 a barrel. Earlier, it touched $63.84 a barrel, highest since May 1.

“The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U.S. and Iran-backed militia in Iraq,” said Edward Moya, analyst at brokerage OANDA, in an e-mail to Reuters.

An air strike at the Baghdad International Airport early on Friday killed Iranian Major-General Qassem Soleimani, head of the elite Quds Force, and Iraqi militia commander Abu Mahdi al-Muhandis, an Iraqi militia spokesman told Reuters.

The Pentagon later confirmed it was a U.S. air strike that killed Soleimani. Reuters

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