Asian stocks fall due to surging oil prices
Saturday, 20 October 2007
SINGAPORE, Oct 19 (Internet)): A fresh spike in oil prices above 90 USD a barrel weighed on stock markets across Asia Friday as investors worried that rising energy costs will hurt companies and consumers and put the brakes on global economic growth.
Asian markets are set to ease further next week on heightened concerns of a slowdown in the global economy although they are generally expected to weather the surge in oil prices and the global economic slowdown because the economic boom in China has made them more resilient to external shocks.
The Nikkei 225 ended the day lower by 1.7 pc at 16,814.37 with a firmer yen putting added pressure on export stocks. The Topix lost 1.6 pc to 1,591.28.
In Sydney, the S&P/ASX 200 was down 0.9 pc at 6,706.3 and the All Ordinaries was off 0.9 pct to 6,723.3.
The Shanghai Composite closed down 0.12 pc at 5,818.05, while the Hong Kong market was closed for a public holiday.
The Korean KOSPI fell 1.8 pc to 1,970.10
Crude futures spiked to a record 90.02 USD a barrel in after-hours trade in New York as increased tensions between Turkey's government and Kurdish rebels in northern Iraq added to supply concerns, heading into the US winter season.
'Any oil price hike will, of course, be a big burden to the broader economy,' said Kang Moon-Sung, analyst at Korea Investment & Securities. 'Surging oil prices will continue to be a key drag on the market until the next FOMC meeting.'
In Tokyo, a stronger yen hurt shares of the big exporters, with Canon down 2.8 pc at 5,930 yen, Toyota off 1.6 pc to 6,250 yen and Nissan Motor also slipping 0.8 pc to 1,114 yen. The yen was hovering around 115.09-13 yen against the dollar.
Bank shares fell with Mitsubishi UFJ Financial Group down 13 yen or 1.3 pct to 1,027, Sumitomo Mitsui Financial Group off 11,000 yen or 1.3 pct to 837,000, Resona Holdings losing 6,000 yen or 3.1 pct to 188,000 and Mizuho Financial Group down 14,000 yen or 2.2 pct at 616,000.
In Sydney, mineral sands miner Iluka Resources fell 28 cents or 5.5 pc at 4.89 aud after cutting its 2007 earnings guidance because of the Australian dollar's appreciation to 23-year highs against the US dollar.
Elsewhere, Malaysian shares closed lower, erasing the small gains made in the last two days, as concerns emerged over the impact of high oil prices on global economic growth. The Kuala Lumpur Composite closed down 0.5 pc at 1,370.17.
Asian markets are set to ease further next week on heightened concerns of a slowdown in the global economy although they are generally expected to weather the surge in oil prices and the global economic slowdown because the economic boom in China has made them more resilient to external shocks.
The Nikkei 225 ended the day lower by 1.7 pc at 16,814.37 with a firmer yen putting added pressure on export stocks. The Topix lost 1.6 pc to 1,591.28.
In Sydney, the S&P/ASX 200 was down 0.9 pc at 6,706.3 and the All Ordinaries was off 0.9 pct to 6,723.3.
The Shanghai Composite closed down 0.12 pc at 5,818.05, while the Hong Kong market was closed for a public holiday.
The Korean KOSPI fell 1.8 pc to 1,970.10
Crude futures spiked to a record 90.02 USD a barrel in after-hours trade in New York as increased tensions between Turkey's government and Kurdish rebels in northern Iraq added to supply concerns, heading into the US winter season.
'Any oil price hike will, of course, be a big burden to the broader economy,' said Kang Moon-Sung, analyst at Korea Investment & Securities. 'Surging oil prices will continue to be a key drag on the market until the next FOMC meeting.'
In Tokyo, a stronger yen hurt shares of the big exporters, with Canon down 2.8 pc at 5,930 yen, Toyota off 1.6 pc to 6,250 yen and Nissan Motor also slipping 0.8 pc to 1,114 yen. The yen was hovering around 115.09-13 yen against the dollar.
Bank shares fell with Mitsubishi UFJ Financial Group down 13 yen or 1.3 pct to 1,027, Sumitomo Mitsui Financial Group off 11,000 yen or 1.3 pct to 837,000, Resona Holdings losing 6,000 yen or 3.1 pct to 188,000 and Mizuho Financial Group down 14,000 yen or 2.2 pct at 616,000.
In Sydney, mineral sands miner Iluka Resources fell 28 cents or 5.5 pc at 4.89 aud after cutting its 2007 earnings guidance because of the Australian dollar's appreciation to 23-year highs against the US dollar.
Elsewhere, Malaysian shares closed lower, erasing the small gains made in the last two days, as concerns emerged over the impact of high oil prices on global economic growth. The Kuala Lumpur Composite closed down 0.5 pc at 1,370.17.