Oil prices soar on producer output cuts; Asian shares mixed
Bangkok (AP): Oil prices soared more than 5% after Saudi Arabia and other major oil producers said they will cut production by 1.15 million barrels per day from May until the end of the year. Shares in Asia were mixed on Monday and the dollar rose against the Japanese yen.
U.S. benchmark crude oil rose 4.14 to 79.81 per barrel, or 5.5%, in electronic trading on the New York Mercantile Exchange. It rose 1.30 to 75.67 per barrel on Friday, ahead of the weekend meeting where members of the so-called OPEC+ group of oil exporting countries decided on the cuts, which are in addition to a reduction announced last October that infuriated the Biden administration.
The cuts immediately pushed prices higher and were expected to also lead to higher gas prices, adding to strains in many countries where high fuel prices are a heavy burden. Higher oil prices also will complicate the efforts by central banks to rein in inflation.
"This will create both political waves across Europe and even higher general inflation in the USA, leading to renewed pressure on the Federal Reserve to keep hiking rates aggressively," Clifford Bennett, chief economist at ACY Securities, said in a report.
Stock markets were mixed. Tokyo's Nikkei 225 index gained 0.6% to 28,210.44, even after a quarterly survey by the Bank of Japan showed business sentiment among big Japanese manufacturers falling in the first quarter of this year. The headline measure of the "Tankan" showed positive sentiment falling to 1 from 7 in December, the worse quarterly result since since December 2020.
Hong Kong's Hang Seng slipped 0.3% to 20,330.99, while the Shanghai Composite index rose 0.6% to 3,291.06. Australia's S&P/ASX 200 advanced 0.7% to 7,229.60. Shares rose in Taiwan but edged lower in Bangkok.
Surveys of purchasing managers in emerging Asian markets declined last month as export orders weakened, adding to signs of fragility in the global economy.
"With global growth set to remain weak in the coming quarters, we expect manufacturing output in Asia to remain under pressure," Shivaan Tandon of Capital Economics said in a commentary.
On Friday, the S&P 500 gained 1.4% Friday to 4,109.31, rising 3.5% for the month, with tech stocks leading the way. Friday's gains came after a report showed inflation slowed in February, though it was still high on a historical basis. A slowdown in inflation could give the Federal Reserve more leeway to take it easier on interest rates.
The Dow Jones Industrial Average rose 1.3% to 33,274.15, while the Nasdaq composite climbed 1.7% to 12,221.91. For the Nasdaq, big leaps for technology stocks drove a gain of 16.8% for the quarter, its best since the surge out of the coronavirus-caused crash in the spring of 2020.
High rates can undercut inflation but only by bluntly slowing the entire economy, which raises the risk of a recession. They also drag down prices for stocks, bonds and other investments.
Expectations for an easier Fed have helped Big Tech stocks in particular because high-growth stocks are seen as some of the biggest beneficiaries of lower rates. That's helped to prop up the S&P 500, where Big Tech stocks play an outsized role because of their massive size. Apple, Microsoft and Google's parent Alphabet each posted double-digit gains for March.
Adding to challenges for the Fed, the second- and third-largest U.S. bank failures in history rocked markets after depositors rushed to pull their money out of Silicon Valley Bank and Signature Bank. The runs have pushed investors to cast harsher scrutiny on banks globally in the hunt for seemingly weak links.
The banking industry's troubles also could act like hikes to interest rates if they cause banks to pull back on lending, stifling hiring and growth for the economy.
In other trading Monday, the U.S. dollar rose to 133.41 Japanese yen from 133.28 yen late Friday. The euro fell to 1.0792 from 1.0794.
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West Bengal: BJP holds protest against Sandeshkhali videos, TMC worker 'heckled'
Sandeshkhali (WB), May 12: BJP workers on Sunday demonstrated against the circulation of purported videos "to malign the image" of saffron party leaders in West Bengal's Sandeshkhali, and allegedly heckled the local TMC legislator for spreading "misinformation" over complaints of sexual abuse, lodged by women in the area.
They also beat up a local TMC activist in Sandeshkhali in North 24 Parganas district for allegedly being involved in "disseminating false information about atrocities on women" in the area.
Led by BJP's Basirhat Lok Sabha constituency candidate Rekha Patra, the protestors demonstrated in front of Sandeshkhali Police station, also demanding the release of a party activist arrested in a "false dacoity" case.
Patra accused police of "slapping trumped-up charges on BJP activists" in Sandeshkhali, while "turning a blind eye to the filming and circulation of fake videos" implicating her party leaders and women in the area.
A section of women protestors allegedly dragged the local TMC activist from a house and beat him up in the presence of the party's Sandeshkhali MLA Sukumar Mahata who was there for campaigning, a leader of the ruling party claimed.
As Mahata tried to intervene he was allegedly shoved by the protestors, he said.
Mahata blamed Patra and her supporters for "orchestrating" the attack on the local TMC activist, stating that the "BJP's gameplan to defame Bengal is clear before the people of the state".
"The BJP broke all precedents and tried to disrupt our campaign but we did not retaliate," he said.
A team of police personnel rushed to the spot and managed to rescue the TMC activist.
The riverine Sandeshkhali area — situated on the borders of the Sundarbans, about 100 kilometres from Kolkata — had been on the boil in February with protests over allegations of sexual abuse and land grab against now arrested TMC leader Shajahan Sheikh and his supporters.
In a purported video that surfaced from Sandeshkhali on Saturday night, a local BJP leader was heard saying that over 70 women had received Rs 2,000 each for taking part in protests against local TMC satrap Sheikh and his aides who were accused of sexual assault and land grab.
In the video, lasting over 45 minutes, a man resembling BJP's Sandeshkhali mandal president Gangadhar Kayal told this to the questioner.
It was Kayal who had earlier said in another purported clip, the first in a series in the past week, that the rape allegations were “staged”.
PTI did not independently verify the authenticity of the videos.
One of the women, who demonstrated outside the police station, denied the allegation, and said, "Were we protesting in February for money? The TMC are making false claims".
Patra, the BJP candidate for the Basirhat Lok Sabha seat, alleged that a saffron party worker in the area was "arrested on a false dacoity charge but many TMC activists, allegedly involved in atrocities on women, are roaming around freely".
Branding the BJP as a "violent" party, TMC spokesperson and state minister Shashi Panja said, "TMC poll campaigners are being attacked by BJP candidate from Basirhat, Rekha Patra, and her followers in Sandeshkhali after the conspiracy hatched by the BJP has come to light."
The incident of attack on the TMC activist and the party MLA took place on the day of Prime Minister Narendra Modi's visit to West Bengal and "possibly under his instruction", the state minister alleged.
BJP candidate for Baranagar assembly bypoll and party's spokesperson Sajal Ghosh said the incident reflected the simmering anger of people of Sandeshkhali against TMC.
"The assault on the TMC activist and manhandling of the local MLA is just a pointer. More such incidents may follow if the TMC does not stop bringing disgrace to the mothers and sisters of Sandeshkhali by releasing such fake videos," he said.
TMC's "diabolical gameplan" to deflect attention from the atrocities on women by its leaders in the area will backfire, Ghosh told reporters.
Patra, before being fielded by BJP, was at the forefront of the series of agitation by women in Sandeshkhali in February and March.
