World stocks volatile as oil hits near six-month highs

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The Canadian dollar and Norwegian krone are subdued with Sri Lanka’s markets falling after Easter attacks

Oil prices jumped to near six-month highs on Tuesday as the US tightened sanctions on Iran, sending shares of energy companies higher but largely failing to help the currencies of the main crude-oil producers.

Foreign-exchange market volatility was still largely absent. The dollar held near a three-week high, but the usual beneficiaries of higher oil prices, the Canadian dollar and Norwegian krone, dipped to $1.33 and $8.52 respectively. Overnight, MSCI’s index of Asia-Pacific shares ended 0.1% higher and Japan’s Nikkei closed up 0.2%. Oil and gas gains were offset by losses for airlines and other transport shares facing higher fuel costs.

Oil prices are “not so high that it crushes manufacturing by putting energy-price inputs up, but it is producing a nice boost to oil-producing nations”, said Robert Carnell, Singapore-based chief economist and head of research for Asia Pacific at ING.

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