Stocks extend New Year cheer, Mideast air strikes drive oil higher

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Asian shares extended their New Year's rally on Friday after Wall Street struck another record high on fresh Chinese stimulus while oil spiked ...

SHANGHAI: Asian shares extended their New Year's rally on Friday after Wall Street struck another record high on fresh Chinese stimulus while oil spiked after U.S. air strikes in Iraq heightened geopolitical tensions.

"You have from both a policy and trade perspective a favorable framework for ... risk assets for the weeks to come," said Frank Benzimra, head of Asia equity strategy at Societe Generale in Hong Kong. The news sent oil prices surging, with global benchmark Brent crude shooting 1.74per cent higher to US$67.40 per barrel and U.S. West Texas Intermediate crude jumping 1.60per cent to US$62.16 per barrel.

Equity markets remained unfazed as investors took further support from data on Thursday showing factory activity in China continued to grow at a solid pace in December, and that business confidence improved.

 

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