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Oil climbs with Asia stocks on supply speculation
[SYDNEY] Crude oil climbed toward US$51 a barrel and Asian stocks advanced, helped by a rise in energy producers amid speculation cuts to crude supplies will be extended further. The yen declined.
Stocks in Japan, Australia and South Korea all rose.
Saudi Arabia's energy minister said all producers participating in a deal to limit output agree on extending the cuts by nine months. The S&P 500 Index closed higher on Friday, but the rally was curbed by reports that investigators are focused on a current White House official as a person of interest in the Russia probe. North Korea conducted another ballistic missile test on Sunday, firing a projectile about 500km into the Sea of Japan.
Global equities are close to a record high as investors bet global growth can withstand political turmoil in the US and Brazil, as well as further increases in interest rates. Money managers will be scrutinising minutes released this week from the Federal Reserve's latest meeting, with a more than 80 per cent chance that rates will go up again next month.
Here are the key events investors will be on the lookout for: Fed officials Patrick Harker and Neel Kashkari are both scheduled to speak Monday.
Minutes from the May 3 Fed policy meeting will be released Wednesday.
A key Opec decision will be made in Vienna on Thursday. Opec and its allies agree on extending oil output cuts by nine months, according to Saudi Arabia's energy minister.
Here are the main moves in markets: The yen fell 0.2 per cent - 111.46 per dollar as of 9.16am in Tokyo.
The Aussie fell 0.2 per cent to 74.45 US cents.
Crude climbed 0.6 per cent to US$50.65 per barrel, extending a 2 per cent advance Friday. Oil is trading at the highest levels in a month.
Gold slipped 0.1 per cent to US$1,255.03 an ounce. The metal jumped 2.2 per cent last week.
Stocks Japan's Topix index rose 0.5 per cent, after losing 1.3 per cent last week. Australia's S&P/ASX 200 Index climbed 0.6 per cent and South Korea's Kospi index advanced 0.7 per cent.
Futures on the S&P 500 rose 0.1 per cent after the underlying gauge increased 0.7 per cent Friday.
Ten-year Treasury yields rose one basis point to 2.25 per cent. Treasuries had their best week in a month last week.