Asian Markets Track Wall St Rally as Traders Weigh Russia Sanctions

A pedestrian walks past a stock indicator displaying the Nikkei 225 of the Tokyo Stock Exchange (C, top) and other world stock markets in Tokyo on 16 August 2021. AFP
A pedestrian walks past a stock indicator displaying the Nikkei 225 of the Tokyo Stock Exchange (C, top) and other world stock markets in Tokyo on 16 August 2021. AFP
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Asian Markets Track Wall St Rally as Traders Weigh Russia Sanctions

A pedestrian walks past a stock indicator displaying the Nikkei 225 of the Tokyo Stock Exchange (C, top) and other world stock markets in Tokyo on 16 August 2021. AFP
A pedestrian walks past a stock indicator displaying the Nikkei 225 of the Tokyo Stock Exchange (C, top) and other world stock markets in Tokyo on 16 August 2021. AFP

Equities bounced back Friday from the previous day's rout with investors taking their lead from a rally on Wall Street after Washington decided against imposing the stiffest sanctions on Russia over its invasion of Ukraine.

Russian President Vladimir Putin's decision to send troops into Ukraine sent shockwaves through Asian and European markets and sent oil past $100 for the first time since 2014 as traders contemplated a major conflict in Eastern Europe.

Speculation had been growing for weeks about an incursion, which has stoked fears about supplies of key commodities including wheat, metals and crude, reported AFP.

Investors have also been fretting over the impact of any sanctions Western leaders would impose on Moscow.

Despite a chorus of outrage at Putin's move, the punishments have so far been seen as well short of the most stringent.

While the latest measures from Washington target Russia's two largest banks and see controls on high-tech items aimed at crippling its defense and aerospace sectors, US President Joe Biden has not cut off oil exports.

The news provided a big boost to Wall Street, where all three main indexes surged from deep in the red to end Thursday on a positive note, while crude eased back below $100.

The Nasdaq was the standout performer, ending more than three percent higher as commentators said the crisis could keep the Federal Reserve from embarking on an aggressive series of interest rate hikes to tame inflation.

Tech firms are more susceptible to higher borrowing costs and have been hammered in recent months on bets for tighter monetary policy.

"Stocks don't always move in the way we expect them to," Callie Cox, at trading platform eToro, said on Bloomberg's "QuickTake Stock" broadcast.

"We're sitting here processing these headlines and trying to understand what they mean for the global economy, but first and foremost, fear is a contrarian indicator.

"While we’re all rightfully fearful right now, some investors may be seeing this as a time to jump back in."

The gains in New York filtered through to Asia, where Tokyo, Shanghai, Seoul, Singapore and Wellington all rose more than one percent. Hong Kong, Sydney, Taipei and Jakarta were also up.

Still, oil rose again with Brent back above $100 a barrel as traders remained sensitive to headlines and analysts warned the conflict could keep prices elevated for months.

The caution came despite signs of progress on Iran nuclear talks that could see it begin exporting crude globally again, ramping up supplies at a time when demand is soaring as the world reopens.

While there is talk that the Ukraine crisis could lead the Fed to rethink its plans for tightening monetary policy, there were warnings bank boss Jerome Powell was not likely to be swayed by equity market losses.

"If investors are bidding up the Nasdaq 100 because they think Putin brought back the Powell Put, they may be sadly disappointed," Max Gokhman, of AlphaTrAI, said referring to the idea the Fed would step in to support stocks from suffering hefty losses.

"The Fed isn’t going to stop tightening when the US labor market remains tight and growth is above-trend."

Meanwhile, Federal Reserve Governor Christopher Waller said Thursday the US economy was healthy enough to withstand a rise in rates to one percent by summer with a 50 basis point move next month -- double the usual amount in a single hike.

However, he admitted that the Ukraine crisis could force officials to rethink their plans.

- Key figures around 0230 GMT -
Tokyo - Nikkei 225: UP 1.5 percent at 26,353.58 (break)

Hong Kong - Hang Seng Index: UP 0.4 percent at 22,981.18

Shanghai - Composite: UP 1.2 percent at 3,471.88

Brent North Sea crude: UP 2.1 percent at $101.12 per barrel

West Texas Intermediate: UP 2.1 percent at $94.77 per barrel

Dollar/yen: DOWN at 115.31 yen from 115.49 yen late Thursday

Euro/dollar: UP at $1.1208 from $1.1202

Pound/dollar: UP at $1.3398 from $1.3378

Euro/pound: DOWN at 83.66 pence from 83.70 pence

New York - Dow: UP 0.3 percent at 33,223.83 (close)

London - FTSE 100: DOWN 3.9 percent at 7,207.38 (close)



Riyadh to Add 94 New Trains to Boost Transport Capacity

A Riyadh Metro train travels through the Saudi capital. (SPA)
A Riyadh Metro train travels through the Saudi capital. (SPA)
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Riyadh to Add 94 New Trains to Boost Transport Capacity

A Riyadh Metro train travels through the Saudi capital. (SPA)
A Riyadh Metro train travels through the Saudi capital. (SPA)

The Royal Commission for Riyadh City has signed contracts to procure and manufacture 94 new trains for the capital’s metro network, increasing its fleet to 277 from 183, with deliveries scheduled to begin in batches in 2028.

The new trains are expected to boost the network’s overall passenger capacity by 57%, with increases varying by line: 142% on the red line, 116% on the yellow line, 57% on the blue line, 27% on the orange line and 16% on the purple line. Additional capacity will be allocated according to ridership and projected demand.

The expansion comes as the Riyadh Metro has recorded about 275 million passenger trips since December 2024. Average monthly ridership in 2026 has risen by around 25% compared with the same period in 2025.

The investment is intended to accommodate anticipated growth in travel demand as Riyadh expands and prepares to host major international events, including Expo 2030 and the 2034 FIFA World Cup.

Germany’s Siemens and France’s Alstom are carrying out the contracts, which are worth more than $5 billion in total and cover train manufacturing, systems and equipment, maintenance, training and other technical and operational services.

The trains will be delivered in stages as manufacturing is completed, then undergo testing and operational trials before gradually entering service.

The investment is part of broader efforts to develop Riyadh’s transport infrastructure, including public transit, roads and intersections, to meet the needs of the capital’s growing population and urban expansion.


Copper Steadies as Dollar Strength Counters Chile Supply Worries

Stacks of copper cathodes sit inside Glencore's Canadian Copper Refinery in Montreal, Quebec, Canada on October 3, 2026. (Photo by ANDREJ IVANOV / AFP)
Stacks of copper cathodes sit inside Glencore's Canadian Copper Refinery in Montreal, Quebec, Canada on October 3, 2026. (Photo by ANDREJ IVANOV / AFP)
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Copper Steadies as Dollar Strength Counters Chile Supply Worries

Stacks of copper cathodes sit inside Glencore's Canadian Copper Refinery in Montreal, Quebec, Canada on October 3, 2026. (Photo by ANDREJ IVANOV / AFP)
Stacks of copper cathodes sit inside Glencore's Canadian Copper Refinery in Montreal, Quebec, Canada on October 3, 2026. (Photo by ANDREJ IVANOV / AFP)

Copper prices ‌held nearly steady on Tuesday as a strong US dollar countered support from supply concerns in top producer Chile.

Benchmark three-month copper on the London Metal Exchange was little changed at $14,628.00 a metric ton by 0700 GMT, after hitting a two-week high in the previous session, said Reuters.

The most-traded copper contract on the Shanghai Futures Exchange edged 0.2% higher to 110,990 yuan a ton.

The dollar took ‌a breather ‌but hovered near an 18-month high, ‌underpinned ⁠by safe-haven demand ⁠amid escalating tensions in the Middle East. A stronger greenback makes dollar-denominated metals more expensive for holders of other currencies.

Supply concerns remained in focus after Chilean state miner Codelco partially suspended operations at its El Teniente mine following a landslide, ⁠while Antofagasta's Centinela copper mine and two ‌unions were set ‌to resume talks as a strike continued.

Copper inventories outside ‌the United States have declined in recent ‌months as shipments were diverted to the country ahead of potential tariffs on refined copper imports.

Analysts at BMI raised their average copper price forecast for 2026 ‌to $13,500 per ton from $12,700, citing tariff-related market distortions and persistent supply constraints.

"For the ⁠remainder ⁠of the year, prices are set to oscillate sharply in response to tariff-policy headlines, with the eventual US decision likely to dictate near-term price direction," BMI said.

Among LME metals, aluminium was down 0.4% at $3,039 after touching an eight-month low on Monday, zinc lost 0.7% to $3,729.50, lead rose 0.4% to $1,891, nickel gained 0.2% to $15,640 and tin eased 0.6% to $52,870.

Among SHFE metals, aluminium slipped 1.1%, zinc fell 1.7%, lead rose 1.3%, nickel dipped 0.1% and tin dropped 0.4%.


IMF Forecasts Saudi Economy to Grow 7.9% in 2027

General view of the Kingdom Tower in downtown Riyadh, Saudi Arabia, October 12, 2026. Picture taken with a mobile phone. REUTERS
General view of the Kingdom Tower in downtown Riyadh, Saudi Arabia, October 12, 2026. Picture taken with a mobile phone. REUTERS
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IMF Forecasts Saudi Economy to Grow 7.9% in 2027

General view of the Kingdom Tower in downtown Riyadh, Saudi Arabia, October 12, 2026. Picture taken with a mobile phone. REUTERS
General view of the Kingdom Tower in downtown Riyadh, Saudi Arabia, October 12, 2026. Picture taken with a mobile phone. REUTERS

The International Monetary Fund (IMF) expects the Saudi economy to record strong growth of 7.9 percent in 2027, reflecting a projected recovery in energy production and exports, as well as the gradual restoration of regional trade flows as war-related disruptions ease and the Strait of Hormuz reopens under the report’s baseline scenario.

The forecast highlights the Saudi economy’s ability to regain momentum after the pressures caused this year by disruptions to energy production and transportation. Saudi Arabia is expected to benefit from its diversified oil export routes and infrastructure, which allow part of its exports to be shipped via the Red Sea rather than through the Strait of Hormuz.

In its October World Economic Outlook, the IMF projected that Saudi Arabia’s economy would contract by 3.3 percent in 2026 before rebounding to 7.9 percent growth in 2027.

In its April forecasts, the Fund had expected growth of 3.1 percent in 2026 and 4.5 percent in 2027, reflecting a significant shift in projections due to developments in the conflict and assumptions regarding the resumption of economic activity.

Export Infrastructure Supports Economic Resilience

Saudi Arabia benefits from alternative oil-export outlets, most notably the East-West Pipeline, which transports crude oil from the Eastern Province to the Red Sea port of Yanbu with a capacity of approximately 7 million barrels per day.

The Kingdom aims to raise pipeline capacity to 10 million barrels per day, enhancing the flexibility of its export system in the face of maritime disruptions.

These alternatives strengthen Saudi Arabia’s ability to mitigate the impact of shipping interruptions on oil flows. Under the IMF’s forecasts, the gradual recovery of production and exports is expected to support economic activity next year.

Gulf Recovery Driven by Rebound in Energy Production

The strong growth forecast is not limited to Saudi Arabia. The IMF also expects several Gulf economies to recover sharply in 2027 as production, exports, and logistics services rebound.
Projected growth rates for 2027 are Qatar 18.8%, Kuwait 17.1%, Bahrain 13.9%, the United Arab Emirates 7.7% and Oman 2.2%.

These forecasts follow severe pressure during 2026, when the IMF expects Kuwait’s economy to contract by 16.7%, Qatar’s economy by 15.6%, Bahrain’s economy by 11.3% and the UAE economy to contract by 3.9%.

Meanwhile, Oman is expected to achieve growth of 4.1 percent in 2026.

The IMF’s baseline scenario assumes that the Strait of Hormuz will begin reopening in March 2027, with a broad return to pre-war conditions by October 2027. This would allow energy flows, shipping, insurance services, and payment systems to recover gradually.

The pace of this recovery remains dependent on the course of the conflict and the stability of maritime navigation. Nevertheless, Saudi Arabia’s diversified export routes provide an important buffer, enhancing the economy’s capacity to absorb shocks and restore growth as regional conditions improve.