CORRECTED-GLOBAL MARKETS-Oil surges, stock futures slip after attack on Saudi facility

(Correct milestone for oil prices in first paragraph from
six-month to four-month)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Oil prices surge on fears of global supply disruption
* Safe haven gold, Japanese yen rise, stock futures slip
* Japan markets closed for public holiday, liquidity seen
thin

By Swati Pandey
SYDNEY, Sept 16 (Reuters) - Oil prices surged to four-month
highs on Monday while Wall Street futures turned lower and safe
haven bets returned after weekend attacks on Saudi Arabia's
crude facilities knocked out more than 5% of global oil supply.
U.S. crude futures CLc1 jumped 15% to the highest since
May. It was last at $60.89 a barrel while Brent crude LCOc1
was up 13% at $68.06 after earlier rising to $71.95.
Signalling a weak start for Asian share markets, E-Minis
for the S&P 500 ESc1 were off 0.4% while those for the Dow
1YMc1 eased 0.3%. Liquidity in Asia is expected to be thin on Monday with
Japan shut for a public holiday, which could exacerbate market
volatility.
"Saturday's news of multiple drone attacks on Saudi Arabia
Abqaiq petroleum processing facility is set to reverberate
through global markets this week," said Ray Attrill, head of
forex strategy at National Australia Bank.
In addition to massive supply disruptions, the attacks also
heightened investor worries about the geopolitical situation in
the region and worsening relations between Iran and the United
States. Those concerns powered safe-haven assets with prices for
gold XAU= climbing 1% in early Asian trade to $1,503.09.
The Yemeni Houthi group had claimed responsibility for the
attack, which hit the world's biggest oil-processing facility
but a senior U.S. official told reporters on Sunday that
evidence indicated Iran was behind it.
U.S. President Donald Trump said late on Sunday the United
States was "locked and loaded" for a potential response to the
attack on Saudi Arabia's oil facilities. In currencies, the Saudi news pushed the yen JPY= up 0.2%
to 107.8 per dollar while the Canadian dollar CAD=D3 rose 0.5%
in anticipation of higher oil prices.
The euro EUR=D3 was little moved near a three-week top
while the pound GBP=D3 hovered near Friday's two-month highs.
That left the greenback down 0.15% at 98.105 against a basket of
six major currencies .DXY .
"One immediate question this poses for bond markets is
whether a further rise in the inflation expectations component
of bond yields - which have proved historically sensitive to oil
prices - will give this month's sharp bond market sell-off fresh
impetus," Attrill added.
"Or will safe haven considerations dominate to drive yields
lower? Watch this space."
In early Asian trading, futures for U.S. 10-year Treasury
notes TYv1 rose 0.2%, indicating yields may slip when cash
trading begins. Global bonds were sold off last week, sending yields higher,
led by a broader risk rally on hopes the United States and China
would soon end their long trade war. Better-than-expected U.S.
retail sales data also boosted sentiment.
Chinese data for industrial production, retail sales and
fixed asset investment will be released later on Monday, which
could help set the tone for this week's trade.
Investors also await the outcome of the U.S. Federal
Reserve's policy meeting on Wednesday at which it is widely
expected to ease interest rates and signal its future policy
path. FEDWATCH

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Sam Holmes)