Recovery in crude oil prices lifts Asian shares, as Indian indices closed

Recovery in crude oil prices, along with expectations of a healthy first quarter (Q1) results in US, led Asian markets to make healthy gains on Tuesday.

The Asian indices gained, even as the Indian equity markets remained closed on account of Mahavir Jayanti.

Asian markets had ended on a lower note on Monday owing to a fall in crude oil prices, due to supply side issues.

Monday's down turn in crude oil prices, followed OPEC (Organisation of the Petroleum Exporting Countries) meet in which major producers failed to agree on an output cap.

According to market analysts, an overnight recovery in global crude oil prices on the back of a strike by oil industry workers in Kuwait led to the rise in most of the Asian markets.

The Japanese benchmark Nikkei ended Tuesday's trade higher by 3.68 percent, while Hang Seng index rose by 1.07 percent.

In other Asia-Pacific markets, the Shanghai Composite Index, Kospi Index, and Straits Times Index registered gains, whereas Taiwan's SE Weighted Index and HNX 30 Index fell.

The Shanghai Composite Index inched up by 0.31 percent, South Korea's Kospi Index gained 0.11 percent, and Singapore's Straits Times Index increased by 0.87 percent.

In contrast, Taiwan's SE Weighted Index inched down by 0.37 percent, and Vietnam's HNX 30 Index receded by 1.69 percent.

"Recovery in crude oil prices, along with hopes of a healthy first quarter results in US has supported the rise in the Asian markets today," Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.

"Yesterday's positive close in the Indian markets, too, seemed to have helped today's rise in the Asian indices."

Both the key Indian indices had ended on a higher note on Monday -- the previous trade session, due to expectations of healthy quarterly results, coupled with better-than-expected macro-economic data and forecast of an above-average monsoon rains.

The barometer 30-scrip sensitive index (Sensex) of the BSE had gained 189.61 points or 0.74 percent to end at 25,816.36 points. Similarly, the NSE Nifty had risen by 64.25 points or 0.82 percent, to close at 7,914.70 points.