Asian shares drop as commodity prices tumble on US concerns
Monday, 24 March 2008
SEOUL, March 23 (Bloomberg): Asian stocks fell last week, led by BHP Billiton and Mitsubishi Corp, after commodities prices dropped on concern a US recession will cut demand for raw materials.
BHP Billiton, the world's largest mining company, tumbled after prices for metals such as copper declined. Mitsubishi, Japan's largest trading house, slid after crude prices fell on a US government report that showed oil demand is waning.
"The US is still the biggest contributor to global growth, so any slowdown will have implications for commodity prices," said Jason Teh, who helps manage the equivalent of $5.3bn at Investors Mutual Ltd in Sydney.
Samsung Electronics Co advanced after South Korea's won fell to its weakest against the dollar in more than two years, boosting the value of overseas sales when converted back into local currency.
The MSCI Asia Pacific Index slipped 0.1 per cent last week and is down 14 per cent for the year. Japan's Nikkei 225 Index gained 2.0 per cent. Vietnam's VN Index plunged 15 per cent to its lowest since November 2006, the biggest decline in the region, after the government failed to convince investors it would provide timely support to the market.
Energy companies and materials producers were the two worst- performing industries among the 10 groups on MSCI's Asian index, according to data compiled by Bloomberg. BHP fell 11 per cent to A$33.87, capping its worst week since the period ended September 21, 2001. Mitsubishi retreated 12 per cent to ¥2,745, the biggest weekly loss since August 10.
A measure of six metals traded on the London Metal Exchange, including copper and nickel, dropped 8.0 per cent in its worst week since July 21, 2006. Crude oil fell to $101.84 a barrel in New York.
Investors who had poured money into gold, oil and corn, seeking a hedge against inflation and a weak dollar, sold commodities to raise cash.
The Reuters/Jefferies CRB Index of 19 commodities tumbled 8.3 per cent this week, the most since at least 1956, after touching a record on February 29.
Gold futures in New York had the biggest weekly loss since August 1990 after reaching a record $1,033.90 an ounce on March 17. Oil plunged almost $10 over three days, after rallying to $111.80 a barrel, the highest ever.
BHP Billiton, the world's largest mining company, tumbled after prices for metals such as copper declined. Mitsubishi, Japan's largest trading house, slid after crude prices fell on a US government report that showed oil demand is waning.
"The US is still the biggest contributor to global growth, so any slowdown will have implications for commodity prices," said Jason Teh, who helps manage the equivalent of $5.3bn at Investors Mutual Ltd in Sydney.
Samsung Electronics Co advanced after South Korea's won fell to its weakest against the dollar in more than two years, boosting the value of overseas sales when converted back into local currency.
The MSCI Asia Pacific Index slipped 0.1 per cent last week and is down 14 per cent for the year. Japan's Nikkei 225 Index gained 2.0 per cent. Vietnam's VN Index plunged 15 per cent to its lowest since November 2006, the biggest decline in the region, after the government failed to convince investors it would provide timely support to the market.
Energy companies and materials producers were the two worst- performing industries among the 10 groups on MSCI's Asian index, according to data compiled by Bloomberg. BHP fell 11 per cent to A$33.87, capping its worst week since the period ended September 21, 2001. Mitsubishi retreated 12 per cent to ¥2,745, the biggest weekly loss since August 10.
A measure of six metals traded on the London Metal Exchange, including copper and nickel, dropped 8.0 per cent in its worst week since July 21, 2006. Crude oil fell to $101.84 a barrel in New York.
Investors who had poured money into gold, oil and corn, seeking a hedge against inflation and a weak dollar, sold commodities to raise cash.
The Reuters/Jefferies CRB Index of 19 commodities tumbled 8.3 per cent this week, the most since at least 1956, after touching a record on February 29.
Gold futures in New York had the biggest weekly loss since August 1990 after reaching a record $1,033.90 an ounce on March 17. Oil plunged almost $10 over three days, after rallying to $111.80 a barrel, the highest ever.