Asian stocks fall on lower oil, metals prices
Sunday, 18 November 2007
SINGAPORE, Nov 17 (Bloomberg): Asian stocks fell for a second week, led by BHP Billiton Ltd., the world's largest mining company, and Woodside Petroleum Ltd., after metals prices declined and crude oil retreated below $94 a barrel.
"We have exited from commodity-related investments," said Leslie Phang, who helps manage $1 billion at Commonwealth Private Bank in Singapore. "While oil prices will eventually trend higher in the longer term, current price levels are not sustainable."
National Australia Bank Ltd. and HSBC Holdings Plc led financial companies lower on concern they may report widening losses linked to US home loans to borrowers with poor credit, after Wells Fargo & Co. said its fourth-quarter home-equity losses are likely to increase.
The Morgan Stanley Capital International Asia Pacific Index fell 2.8 per cent this week, its second-straight weekly decline. Energy stocks had the biggest per centage decline among the 10 industry groups on the gauge, sliding 6.2 per cent.
Japan's Nikkei 225 Stock Average fell 2.8 per cent, while the broader Topix index slid 1.5 per cent. Toyota Motor Corp. and Canon Inc. paced declines by Japanese exporters after the yen gained for a second week against the US dollar, reducing the value of dollar-denominated receipts in local currency terms.
Benchmarks elsewhere in the region declined, except in India and Sri Lanka. Hong Kong's Hang Seng Index fell 4.1 per cent on speculation China's central bank will raise interest rates and after a plan to allow Chinese citizens to invest directly in the city's stock market was delayed. Industrial & Commercial Bank of China Ltd. fell 5 per cent to HK$6.07 in Hong Kong and 1.3 per cent in Shanghai.
BHP Billiton lost 3.1 per cent to A$41.15 in Sydney. A magnitude-7.7 earthquake struck Chile on Nov. 14 and stopped production at its mines, including Escondida, the world's largest copper source. Production resumed the day after.
Sumitomo Metal Mining Co., Japan's biggest gold and nickel producer, dropped 6.2 per cent to 2,255 yen. Jiangxi Copper Co., China's second-biggest producer of the metal, declined 8 per cent to HK$19.46. Its Shanghai-traded shares fell 5 per cent.
A measure of six metals traded on the London Metal Exchange slid 2.x per cent this week, its fifth consecutive weekly decline.
"We have exited from commodity-related investments," said Leslie Phang, who helps manage $1 billion at Commonwealth Private Bank in Singapore. "While oil prices will eventually trend higher in the longer term, current price levels are not sustainable."
National Australia Bank Ltd. and HSBC Holdings Plc led financial companies lower on concern they may report widening losses linked to US home loans to borrowers with poor credit, after Wells Fargo & Co. said its fourth-quarter home-equity losses are likely to increase.
The Morgan Stanley Capital International Asia Pacific Index fell 2.8 per cent this week, its second-straight weekly decline. Energy stocks had the biggest per centage decline among the 10 industry groups on the gauge, sliding 6.2 per cent.
Japan's Nikkei 225 Stock Average fell 2.8 per cent, while the broader Topix index slid 1.5 per cent. Toyota Motor Corp. and Canon Inc. paced declines by Japanese exporters after the yen gained for a second week against the US dollar, reducing the value of dollar-denominated receipts in local currency terms.
Benchmarks elsewhere in the region declined, except in India and Sri Lanka. Hong Kong's Hang Seng Index fell 4.1 per cent on speculation China's central bank will raise interest rates and after a plan to allow Chinese citizens to invest directly in the city's stock market was delayed. Industrial & Commercial Bank of China Ltd. fell 5 per cent to HK$6.07 in Hong Kong and 1.3 per cent in Shanghai.
BHP Billiton lost 3.1 per cent to A$41.15 in Sydney. A magnitude-7.7 earthquake struck Chile on Nov. 14 and stopped production at its mines, including Escondida, the world's largest copper source. Production resumed the day after.
Sumitomo Metal Mining Co., Japan's biggest gold and nickel producer, dropped 6.2 per cent to 2,255 yen. Jiangxi Copper Co., China's second-biggest producer of the metal, declined 8 per cent to HK$19.46. Its Shanghai-traded shares fell 5 per cent.
A measure of six metals traded on the London Metal Exchange slid 2.x per cent this week, its fifth consecutive weekly decline.