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Asia stocks, dollar subdued as market seeks next catalyst, oil rises Mon May 8, 2017 | 10:42pm EDT

http://www.reuters.com/article/us-global-markets-idUSKBN185027
http://www.reuters.com/

By Nichola Saminather | SINGAPORE

Asian stock markets were mixed on Tuesday following a flat close on Wall Street, as investors searched for the next catalyst following France's presidential election, while oil inched higher on expectations OPEC supply cuts will be extended.

The South Korean stock market is closed for Tuesday's presidential election, in which liberal Moon Jae-in is widely expected to win the presidency, following months of leadership vacuum after former President Park Geun-hye was removed on charges of bribery and abuse of power.

The polls opened at 6 a.m. (2100 GMT on Monday) and will close at 8 p.m. (1100 GMT). The winner is expected to be sworn in on Wednesday after the Election Commission releases the official result.

Allies and neighbors are closely watching the election amid escalating tensions over North Korea's accelerating development of weapons since it conducted its fourth nuclear test in January last year. It conducted a fifth test in September and is believed ready for another.

North Korea would be keen to see a Moon victory. Its official Rodong Sinmun newspaper said in a commentary on Monday the time had come to put confrontation behind the Koreas by ending conservative rule in the South.

"South Korean markets had not registered significant risk-off sentiment similar to other economies pre-elections, and this is no surprise," Jingyi Pan, market strategist at IG in Singapore, wrote in a note.

"The largely similar stance on policies by the Presidential candidates provides little chance of surprise as compared to last week's French election. Meanwhile, the filling of the political vacuum could go a long way to benefitting the economy."

The Korean won KRW= was slightly lower on Tuesday, with the dollar buying 1,133.34 won.

South Korean stocks closed at a record high on Monday.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.1 percent on Tuesday.

Japan's Nikkei .N225 was also down 0.1 percent.

China's CSI 300 index .CSI300 retreated 0.8 percent, while Hong Kong's Hang Seng .HSI fell 0.1 percent.

Taiwan stocks .TWII bucked the trend, surpassing the 10,000 point mark to hit a two-year high. They were last up about 0.2 percent.

Most southeast Asian stocks were also higher.

The MSCI World index .MIWD00000PUS, which touched a record high overnight, edged lower.

The dollar was also little changed at 113.24 yen JPY=D4, retaining most of Monday's 0.4 percent gain.

The dollar index .DXY was also steady at 99.11.

The euro EUR=EBS crawled up slightly to $1.0929 after tumbling 0.7 percent on Monday.

"A Macron win is largely priced into the euro," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. "Heavy trading in the spot market so far today suggests a modest unwind of the April and May rally is coming, at least."

French stocks .FCHI slumped 0.9 percent overnight, as investors took profits following strong gains in the run-up to Sunday's vote that saw the market favorite, centrist Emmanuel Macron, elected president.

Germany's DAX .GDAXI closed 0.2 percent lower, while Britain's FTSE .FTSEwas marginally higher.

On Wall Street, all three major indexes closed flat, holding near recent all-time highs. The CBOE Volatility Index .VIX closed at 9.77, its lowest since December 1993.

In commodities, oil edged up from a near-six-month low hit last week, lifted by statements from major oil producing countries that supply cuts could be extended into 2018.

U.S. crude CLc1 advanced 0.1 percent to $46.47 a barrel.

Global benchmark Brent LCOc1 also rose 0.1 percent to $49.36.

Copper pulled higher from Monday's four-month low, reached after data showed a sharp drop on imports into China, the world's biggest consumer.

London copper CMCU3 added 0.2 percent to $5,495.50 a tonne on Tuesday, after falling to as low as $5,462.50 on Monday.

Gold recovered from a seven-week trough touched on Monday. Spot gold XAU= rose 0.2 percent to $1,227.93 an ounce.

 

(Reporting by Nichola Saminather; Additional reporting by Noel Randewich; Editing by Eric Meijer and Sam Holmes)