Asia bourses remain cautious despite gains on Wall St

Asian stock markets were cautious yesterday even after gains on Wall Street and as oil entered a bull market.
The US and Europe had given the region a positive lead, supported by a dovish outlook for US interest rates and some healthy post-Brexit data in Britain.
The oil price also continued its upward trend overnight, with Brent crude holding above $50 a barrel on official data showing lower US crude stockpiles and hints of a possible production freeze.
Tokyo finished 0.4% up, after a day of see-saw trading — having edged into negative territory at the break.
The yen had eased somewhat against the dollar, supporting automakers such as Toyota and Honda.
A weaker currency is a plus for Japan’s exporters, as it boosts the overseas profitability of exporters.
Sydney rose 0.3% while Shanghai and Wellington were also slightly up.
But Hong Kong slid 0.2% by the close, with casino companies Sands China and Galaxy Entertainment plunging 4.4 and 3.1% respectively.
Taipei, Manila and Kuala Lumpur were also down, while Seoul, and Bangkok were flat.
“The market lacks momentum,” Margaret Yang, an analyst at CMC Markets in Singapore, told Bloomberg News.
“The market has been driven by liquidity arising from loose monetary policies by central banks around the world, rather than improving economic fundamentals.
Besides the rally in oil, there’s nothing that could push share prices higher.”Oil continued its upward trend overnight, and though prices eased slightly in Asia trade, Brent crude held firmly above $50 a barrel as a bullish momentum continued, fuelled by hopes of an output freeze by key producers and data showing robust US demand.
Prices have roared back to enter a bull market, rallying more than 20% from lows seen earlier this month when they pushed below $40 a barrel for the first time since April.
Members of the Organisation of the Petroleum Exporting Countries and their rivals outside the group are to meet informally next month in Algeria, and there have been hints their talks could include ways to stabilise the oversupplied crude oil market.
Adding to that, official US government data showed US commercial crude stockpiles fell by 2.5mn barrels and gasoline stocks by 2.7mn barrels in the week to August 12, indicating robust demand in the world’s top oil consumer. Weakness in the US currency has also helped boost the dollar-traded commodity by making it cheaper, encouraging demand.
“The bounce in oil was helped along by further jawboning from the former president of Opec, Chakib Khelil, who stated that an Opec supply-freeze deal was on course because its biggest members were already producing a record levels,” said Angus Nicholson, a Melbourne-based analyst with IG Markets.
West Texas Intermediate was down to $48.04 in the afternoon while Brent was trading at $50.44.
In early European trade, London dropped 0.2%, Paris and Frankfurt lost 0.9%.
In Tokyo, the Nikkei 225 up 0.4% at 16,545.82 points; Shanghai — Composite up 0.1% 3,108.10 points and Hong Kong — Hang Seng down 0.2% at 22,984.14 points at the close yesterday.