Sentiments remain fragile as Asia stocks surge, crude bounces

New Delhi : Asian shares and the dollar were higher on Thursday, but investors remained cautious as another shakeout on Wall Street and rising oil prices suggested volatility in financial markets will continue to risk the appetite of the investors.

The heated selloff in oil markets appeared to slow down in the early Asian trade, though data out of the United States underlined the fragile state of the global economy and investor confidence.

US crude for February delivery, which expired at the end of the day, slid 6.7 percent to settle at USD 26.55.

Consumer prices unexpectedly fell in December, suggesting inflation is more sluggish that the US Federal Reserve believes. Other data on Wednesday showed a drop in housing starts and building permits last month, which led investors to pare expectations of further interest rate hikes this year.

The euro edged down about 0.1 percent to USD 1.0873, ahead of the European Central Bank’s regular policy meeting later in the session. (ANI)