:00:00. > :00:13.Now on BBC News all the latest business news live from Singapore.
:00:14. > :00:26.Asian stocks are falling but Chinese markets that have just opened are
:00:27. > :00:36.higher. A slippery slope for oil and we find out why they have tumbled to
:00:37. > :00:42.a 12 year low. Welcome to Asia Business Report. We have been
:00:43. > :00:48.watching Chinese stocks and they have just reopened for the first
:00:49. > :00:56.time since yesterday. The benchmark is currently up 3%. It is a huge
:00:57. > :01:00.relief for many investors. China's authorities say they have suspended
:01:01. > :01:15.the circuit Baker and is that led to trading being stopped -- breaker. We
:01:16. > :01:26.have seen of course Japan's Nikkei has been lower because of this
:01:27. > :01:34.positive" have seen in China. This has been a hugely volatile week from
:01:35. > :01:44.markets and we saw them having the worst ever start. The very latest,
:01:45. > :01:48.let us go live. We have seen this positive open the Chinese stocks and
:01:49. > :02:00.a lot of investors are reading a huge sigh of relief. What do we owe
:02:01. > :02:03.it to? I think it is part of the mini rollercoaster ride that our
:02:04. > :02:09.markets are coming back from the holidays. The year has kicked off
:02:10. > :02:12.but multiple new policies are kicked into place at the start of the New
:02:13. > :02:20.Year. But only in regard to the circuit breakers, but where the new
:02:21. > :02:31.trade index has started to garner more attention given how it is
:02:32. > :02:34.starting to influence the fixing. It is not to say that markets will
:02:35. > :02:37.inevitably stay on the front foot for the rest of the year. I would
:02:38. > :02:48.say I would buckle up for a copyright. -- bumpy ride. Investors
:02:49. > :02:58.are tired of hearing that, I think. We are sing a game of people are
:02:59. > :03:03.questioning the confidence of the regulators of China due to this
:03:04. > :03:10.constant going back and forwards removing these circuit breakers.
:03:11. > :03:17.What is this say about policy? It is creating confidence amongst
:03:18. > :03:23.investors? There is a very nuanced fact that we need to acknowledge and
:03:24. > :03:28.that is the way in Chinese officials have introduced new policies they
:03:29. > :03:32.have always accompanied it with several reiteration is as to what to
:03:33. > :03:36.drop the policies and the details of those policies. Investors,
:03:37. > :03:46.typically, nonetheless, have a knee-jerk reaction when the outcome
:03:47. > :03:54.comes into play. People knew it was coming into January one. And with
:03:55. > :04:02.the expiration of the six-month ban, everyone knew that was coming this
:04:03. > :04:10.Friday. On top of that, with the currency as well, they are aiming
:04:11. > :04:14.for stability. We have been looking at how that currency has been
:04:15. > :04:22.trading. We are seeing that Asian markets are reversing those previous
:04:23. > :04:25.losses. Is it a surprise that a lot of global investors are reacting
:04:26. > :04:29.this way to all this volatility in China and should they be reacting
:04:30. > :04:39.that way when there's really only 2% of foreign investors invested
:04:40. > :04:45.there? It is not an entire surprise when a new policy comes out and
:04:46. > :04:55.markets have become accustomed to the pre-existing policy. It always
:04:56. > :05:04.take -- takes time. Keep a clear head and keep your eyes focused on
:05:05. > :05:08.what the underlying processes. They are supporting growth and ensuring
:05:09. > :05:16.the gear acceleration does not get too sharp. Keep an eye on what they
:05:17. > :05:25.are saying but at the same time make sure you understand that different
:05:26. > :05:35.pieces I'm -- are moving. And don't get phased. Thank you very much. The
:05:36. > :05:41.Hong Kong's currency has opened higher as well. Oil prices have also
:05:42. > :05:45.taken a bit of a battering after all of the volatility in stock markets
:05:46. > :05:50.that we have seen. That is because of a slowdown in China, the world's
:05:51. > :05:59.second is consumer of oil. Crude prices are down. Take a look at this
:06:00. > :06:05.chart as it shows a dramatic slide below $34 a barrel. That us take a
:06:06. > :06:10.look at where they are trading right now. We are seeing a bit of a
:06:11. > :06:16.recovery this morning in Asia. They are higher by about 2%. Wire have a
:06:17. > :06:26.tumbled so much in recent months and these there any chance they will
:06:27. > :06:37.rebound. It is a supply driven price . Russia, the US, and Canada has
:06:38. > :06:44.increased production. It is largely driven by the Saudi policy tried to
:06:45. > :06:48.force the hand of these external produces to win back market share.
:06:49. > :06:58.So there is the political motivations
:06:59. > :07:06.prices fall and the strengthening US dollar. What do these lower oil
:07:07. > :07:09.prices mean the regional economies in Asia? They are coping with this
:07:10. > :07:14.topping with China slipping, that a man dropping off, this affects Asia
:07:15. > :07:20.at large. We are also adjusting to an environment where we have to cope
:07:21. > :07:28.with gradually rising interest rates . It makes it more challenging for a
:07:29. > :07:34.developing economy. And how long do you see this lasting? I think this
:07:35. > :07:39.will run through this year at the very least. You will not have the
:07:40. > :07:49.turnaround coming against his back drop of diplomatic feuding with the
:07:50. > :07:56.Saudis. I do not see a resolution happening with the conflict of the
:07:57. > :08:01.two largest exporters and produces. OPEC will compete with them which
:08:02. > :08:07.they have not faced in the last year. I mentioned China earlier. But
:08:08. > :08:14.how much do they have to do with all of this because the rejections are
:08:15. > :08:21.driving the increase in energy and a driving the increase in energy and a
:08:22. > :08:26.man grows. -- demand growth. Anywhere else in the world this
:08:27. > :08:31.would be great, but in the case of China it slipping and the
:08:32. > :08:36.transformation from an export orientated manufacturing economy to
:08:37. > :08:42.a domestic focused service economy. All of this is hitting at a time
:08:43. > :08:47.where markets are in turmoil and China, I think, the one big factor
:08:48. > :09:01.we will have to watch is how they play out. This could be a Black
:09:02. > :09:06.Friday with all asset prices. More than likely to come into five Lene
:09:07. > :09:10.dollars up 15% from a year ago. It fall short of expectations. The
:09:11. > :09:14.global leader in smart phones and memory chips will give a more
:09:15. > :09:21.detailed earnings report at the end of the month. It has been gadgets
:09:22. > :09:32.galore at the annual consumer and atomic show in Las Vegas. --
:09:33. > :09:34.electronic. There has been a huge focus on how to make our smartphones
:09:35. > :09:59.even smarter. You can extend your phone with those
:10:00. > :10:03.modules. We have a bunch of 12 done. We are open to a community to
:10:04. > :10:32.develop new projects. That is it for this edition of Asia
:10:33. > :10:47.Business Report. Thank you for watching. You watching BBC News. The
:10:48. > :10:52.top stories this hour. Trading has resumed in China without these
:10:53. > :10:53.circuit rake safety mechanism that shut down trading