08/01/2016 Asia Business Report

Now on BBC News all the latest business news live from Singapore.

Asian stocks are falling but Chinese markets that have just opened are

higher. A slippery slope for oil and we find out why they have tumbled to

a 12 year low. Welcome to Asia Business Report. We have been

watching Chinese stocks and they have just reopened for the first

time since yesterday. The benchmark is currently up 3%. It is a huge

relief for many investors. China's authorities say they have suspended

the circuit Baker and is that led to trading being stopped -- breaker. We

have seen of course Japan's Nikkei has been lower because of this

positive" have seen in China. This has been a hugely volatile week from

markets and we saw them having the worst ever start. The very latest,

let us go live. We have seen this positive open the Chinese stocks and

a lot of investors are reading a huge sigh of relief. What do we owe

it to? I think it is part of the mini rollercoaster ride that our

markets are coming back from the holidays. The year has kicked off

but multiple new policies are kicked into place at the start of the New

Year. But only in regard to the circuit breakers, but where the new

trade index has started to garner more attention given how it is

starting to influence the fixing. It is not to say that markets will

inevitably stay on the front foot for the rest of the year. I would

say I would buckle up for a copyright. -- bumpy ride. Investors

are tired of hearing that, I think. We are sing a game of people are

questioning the confidence of the regulators of China due to this

constant going back and forwards removing these circuit breakers.

What is this say about policy? It is creating confidence amongst

investors? There is a very nuanced fact that we need to acknowledge and

that is the way in Chinese officials have introduced new policies they

have always accompanied it with several reiteration is as to what to

drop the policies and the details of those policies. Investors,

typically, nonetheless, have a knee-jerk reaction when the outcome

comes into play. People knew it was coming into January one. And with

the expiration of the six-month ban, everyone knew that was coming this

Friday. On top of that, with the currency as well, they are aiming

for stability. We have been looking at how that currency has been

trading. We are seeing that Asian markets are reversing those previous

losses. Is it a surprise that a lot of global investors are reacting

this way to all this volatility in China and should they be reacting

that way when there's really only 2% of foreign investors invested

there? It is not an entire surprise when a new policy comes out and

markets have become accustomed to the pre-existing policy. It always

take -- takes time. Keep a clear head and keep your eyes focused on

what the underlying processes. They are supporting growth and ensuring

the gear acceleration does not get too sharp. Keep an eye on what they

are saying but at the same time make sure you understand that different

pieces I'm -- are moving. And don't get phased. Thank you very much. The

Hong Kong's currency has opened higher as well. Oil prices have also

taken a bit of a battering after all of the volatility in stock markets

that we have seen. That is because of a slowdown in China, the world's

second is consumer of oil. Crude prices are down. Take a look at this

chart as it shows a dramatic slide below $34 a barrel. That us take a

look at where they are trading right now. We are seeing a bit of a

recovery this morning in Asia. They are higher by about 2%. Wire have a

tumbled so much in recent months and these there any chance they will

rebound. It is a supply driven price . Russia, the US, and Canada has

increased production. It is largely driven by the Saudi policy tried to

force the hand of these external produces to win back market share.

So there is the political motivations

prices fall and the strengthening US dollar. What do these lower oil

prices mean the regional economies in Asia? They are coping with this

topping with China slipping, that a man dropping off, this affects Asia

at large. We are also adjusting to an environment where we have to cope

with gradually rising interest rates . It makes it more challenging for a

developing economy. And how long do you see this lasting? I think this

will run through this year at the very least. You will not have the

turnaround coming against his back drop of diplomatic feuding with the

Saudis. I do not see a resolution happening with the conflict of the

two largest exporters and produces. OPEC will compete with them which

they have not faced in the last year. I mentioned China earlier. But

how much do they have to do with all of this because the rejections are

driving the increase in energy and a driving the increase in energy and a

man grows. -- demand growth. Anywhere else in the world this

would be great, but in the case of China it slipping and the

transformation from an export orientated manufacturing economy to

a domestic focused service economy. All of this is hitting at a time

where markets are in turmoil and China, I think, the one big factor

we will have to watch is how they play out. This could be a Black

Friday with all asset prices. More than likely to come into five Lene

dollars up 15% from a year ago. It fall short of expectations. The

global leader in smart phones and memory chips will give a more

detailed earnings report at the end of the month. It has been gadgets

galore at the annual consumer and atomic show in Las Vegas. --

electronic. There has been a huge focus on how to make our smartphones

even smarter. You can extend your phone with those

modules. We have a bunch of 12 done. We are open to a community to

develop new projects. That is it for this edition of Asia

Business Report. Thank you for watching. You watching BBC News. The

top stories this hour. Trading has resumed in China without these

circuit rake safety mechanism that shut down trading