Asian stocks fluctuate on spreading Mid-East unrest

SYDNEY, Feb 28 (Bloomberg): Asian stocks fluctuated on a report oil shipments from Libya's rebel controlled eastern territory may have resumed even as political unrest spread to Oman. Reliance Industries Ltd, owner of the world's largest refining complex, advanced 2.1 per cent in Mumbai. Mizuho Financial Group Inc rallied 1.8 per cent in Tokyo amid speculation Japan's third-biggest bank by market value is planning to make several units, including Mizuho Securities Co, wholly-owned subsidiaries. NEC Corp paced declining shares after Goldman Sachs Group Inc downgraded Japan's largest maker of personal computers. The MSCI Asia Pacific Index rose 0.5 per cent to 137.58 at 3:24 pm in Tokyo. The gauge earlier fell as much as 0.5 per cent as unrest that has swept the Middle East yesterday spread to Oman. There is speculation that "production is back up again in Libya," said Diane Lin, a Sydney-based fund manager at Pengana Capital Ltd, which has about $1 billion of assets. "Everyone has been worried about the oil prices and about inflation in emerging economies." The Wall Street Journal reported oil shipments in Libya may have resumed, citing Hassan Bulifa, a member of Arabian Gulf Oil Co's management committee. A tanker carrying 700,000 barrels of crude was expected to depart Feb 27 from Tobruk in northeast Libya, Bulifa was quoted as saying. The tanker may be bound for China, he said. The gauge last week dropped 2.1 per cent as crude oil climbed above $100 a barrel amid escalating violence in Libya, which has the largest oil reserves in Africa. Japan's Nikkei 225 Stock Average rose 0.9 per cent today, while South Korea's Kospi Index dropped 1.2 per cent, Hong Kong's Hang Seng Index gained 1.1 per cent and China's Shanghai Composite Index increased 1.1 per cent. Australia's S&P/ASX 200 Index slid 0.1 per cent before the entire market was suspended at 2:48 pm in Sydney due to a glitch on the exchange's computer system. Futures on the Standard & Poor's 500 Index slid 0.1 per cent today. The benchmark gauge for US equities rose 1.1 per cent on Feb 25 as confidence among American consumers beat forecasts. Mizuho Financial gained 1.8 per cent to 168 yen in Tokyo. Nikkei English News reported that the bank is discussing purchasing the remainder of Mizuho Securities, Mizuho Trust & Banking Co and Mizuho Investors Securities Co through stock- swap deals with minority shareholders, Nikkei English News reported on Feb 26, without saying where it got the information. Buying the rest of the units may bolster Mizuho's capital ratio under stricter global rules and improve operations, said Tokyo-based Hironari Nozaki, an analyst at Citigroup Inc. Shares of Mizuho Securities, Mizuho Trust & Banking, and Mizuho Investors rallied 12 per cent, 6 per cent and 7 per cent respectively. South Korean builders declined amid speculation the unrest in the Middle East will hurt demand or delay ongoing projects. Daewoo Engineering & Construction Co lost 6.9 per cent to 10,750 won in Seoul and GS Engineering & Construction Corp fell 3.6 per cent to 99,300 won. "Sentiment towards construction companies continues to be weak because of the Middle East concerns," said Kim Young Joon, head of equities at NH-CA Asset Management Co in Seoul, which manages the equivalent of $8.8 billion in assets. Hundreds of Omanis, many unemployed, gathered in a sit-in for a second day in the city of Sohar, refusing to go home after a pledge by the nation's ruler to provide jobs.