Sentiments remain fragile as Asia stocks surge, crude bounces

Sentiments remain fragile as Asia stocks surge, crude bounces
An investor looks at an electronic screen showing stock information at brokerage house in Hangzhou, Zhejiang Province, China, January 11, 2016. China stocks closed down on Monday at their lowest since September, following weak inflation data over the weekend and continuing investor anxiety over the economy and the trajectory of the yuan. REUTERS/China Daily ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA.

New Delhi : Asian shares and the dollar were higher on Thursday, but investors remained cautious as another shakeout on Wall Street and rising oil prices suggested volatility in financial markets will continue to risk the appetite of the investors.

The heated selloff in oil markets appeared to slow down in the early Asian trade, though data out of the United States underlined the fragile state of the global economy and investor confidence.

US crude for February delivery, which expired at the end of the day, slid 6.7 percent to settle at USD 26.55.

Consumer prices unexpectedly fell in December, suggesting inflation is more sluggish that the US Federal Reserve believes. Other data on Wednesday showed a drop in housing starts and building permits last month, which led investors to pare expectations of further interest rate hikes this year.

The euro edged down about 0.1 percent to USD 1.0873, ahead of the European Central Bank’s regular policy meeting later in the session. (ANI)