ASX ASX Limited

A rally in oil prices sent shares of energy companies higher Monday, after stocks posted their best week since the U.S. election.

The Stoxx Europe 600 edged up 0.2% in the early minutes of trading, after the pan-European index closed at its highest since January. The energy sector led gains, up over 2%, while shares of mining companies rose 1.6%.

The moves came as Brent crude oil jumped 4.6% to $58.84 a barrel Monday morning, on track for its highest settlement since July 2015. The Organization of the Petroleum Exporting Countries and non-OPEC countries struck a deal at the weekend to cut output in a bid to reduce global oversupply, pledging to remove 558,000 barrels a day of crude oil from the market.

Higher oil prices helped support Australia's commodity-heavy S&P ASX 200 index. However, China's crackdown on stock purchases by insurance companies sent shares in Shanghai and Shenzhen sharply lower. Stocks in Shenzhen fell nearly 5%, while the Shanghai Composite Index shed 2.5% and stocks in Hong Kong fell 1.5%.

Analysts said sentiment in Asia was also hurt by comments from President-elect Donald Trump suggesting there might be a change in the U.S.'s acceptance of the "one China" principle.

Despite losses in the region, Japan's Nikkei Stock Average gained 0.8%, lifted by a weaker yen, which makes the country's exports more competitive. The dollar was last up 0.5% against the yen and flat against the euro.

In government bond markets, the 10-year U.S. Treasury yield rose to 2.513% from 2.462% Friday, while German bund yields rose to 0.415% from 0.345%. Bond yields move inversely to prices.

Benchmark Italian bonds yielded 2.124%, up from 2.025% Friday, after Italy's President Sergio Mattarella asked departing Foreign Minister Paolo Gentiloni to form a new government.

--Benoit Faucon and Kenan Machado contributed to this article

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

December 12, 2016 04:25 ET (09:25 GMT)

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