Market watch: Asian stocks advance as yen weakens; oil prices edge higher after Opec+ move

Asian markets opened the week on a firm note on Monday, with Tokyo leading gains after Japan’s Prime Minister Shigeru Ishiba announced his resignation, sending the yen lower and boosting exporters. At the same time, oil prices edged higher as Opec+ signalled a slower pace of output increases.Tokyo’s Nikkei index surged 1.9 percent, supported by a weaker yen, which slipped to 148.14 per dollar from 147.07 on Friday. Analysts said Ishiba’s decision to step down after less than a year in power fuelled political uncertainty in Japan, putting pressure on the currency and government bonds. According to news agency AFP, Michael Brown of Pepperstone said the timing of Ishiba’s announcement was “certainly unexpected” and added that it “introduces significant downside risks for the Japanese yen and for long-end Japanese government bonds.”Other regional markets also traded higher, with Hong Kong and Shanghai up 0.3 per cent, Taipei gaining 0.5 per cent and Seoul advancing 0.3 per cent. Singapore and Wellington inched 0.1 percent higher, while Sydney slipped 0.3 per cent. Investors also weighed weak US labour data as it strengthened expectations of a Federal Reserve rate cut later this month. “Most investors remain aligned on a 25 basis point cut at the September Fed meeting, but a 50bp cut is now in play,” said Harun Thilak of Validus Risk Management, as cited by Reuters.On the commodities front, oil prices recovered part of last week’s losses after Opec+ agreed to raise output more modestly from October. As per Reuters, Brent crude rose 0.5 per cent to $65.84 a barrel, while West Texas Intermediate climbed 0.5 percent to $62.17. Eight Opec+ members will lift production by 137,000 barrels per day from next month, a slower pace compared with recent months. Toshitaka Tazawa of Fujitomi Securities said the modest increase offered “relief” but warned that “downward pressure is likely to persist as Opec+ continues to raise production and supplies ease.”