Most Asian stocks drop on record oil
Sunday, 6 July 2008
Most Asian stocks fell, sending the region's benchmark index lower for a fourth week, as record oil and slowing growth dent profits. Japan's Nikkei 225 Stock Average dropped for a 12th day, the longest losing streak in 54 years.
Kyushu Electric Power Company led power producers lower after oil rose above $145 a barrel. Bumiputra-Commerce Holdings Bhd paced declines in Malaysia as UBS AG cut its forecast for banks' profits, citing higher consumer prices and weaker growth. Reliance Communications Ltd. jumped after a newspaper report said the Indian mobile-phone operator plans to raise as much as $6.0 billion to buy Africa's MTN Group Limited.
"It's going to be a difficult second half unless we get a sharp fall in the oil price," said Lim Kok Boon, Singapore-based chief investment officer at Fortis Private Banking, which oversees $9.0 billion. "There's going to be a lot of pain."
The MSCI Asia-Pacific Index added 0.1 per cent to 132.74 at 7:07pm Tokyo time, with five stocks retreating for every four that rose. The measure earlier dropped to 131.97, which would be the lowest close since November 2006. The index completed a four-week, 12 per cent slide, the longest losing streak since the period ended February 8.
Japan's Nikkei 225 retreated 0.2 per cent to 13,237.89, capping a 12-day, 8.4 per cent slump. That's the longest decline since 1954, when the end of the Korean War caused a slump in Japanese industrial sales to the US military. Malaysia's Kuala Lumpur Composite Index dropped 1.7 per cent after trading resumed following a one-day suspension because of a systems failure.
All Asian benchmark indexes fell this week, except Vietnam.
Most US stocks fell Thursday, completing the longest streak of weekly declines in four years, after Nvidia Corporation cut its sales forecast. Markets were closed Friday for a holiday.
MSCI's Asian index fell 13 percent in the first half, the worst start since 1992, as $400 billion in bank write downs and credit-related losses and rising oil prices offset efforts by central banks to bolster confidence in financial markets.
Kyushu Electric Power Company led power producers lower after oil rose above $145 a barrel. Bumiputra-Commerce Holdings Bhd paced declines in Malaysia as UBS AG cut its forecast for banks' profits, citing higher consumer prices and weaker growth. Reliance Communications Ltd. jumped after a newspaper report said the Indian mobile-phone operator plans to raise as much as $6.0 billion to buy Africa's MTN Group Limited.
"It's going to be a difficult second half unless we get a sharp fall in the oil price," said Lim Kok Boon, Singapore-based chief investment officer at Fortis Private Banking, which oversees $9.0 billion. "There's going to be a lot of pain."
The MSCI Asia-Pacific Index added 0.1 per cent to 132.74 at 7:07pm Tokyo time, with five stocks retreating for every four that rose. The measure earlier dropped to 131.97, which would be the lowest close since November 2006. The index completed a four-week, 12 per cent slide, the longest losing streak since the period ended February 8.
Japan's Nikkei 225 retreated 0.2 per cent to 13,237.89, capping a 12-day, 8.4 per cent slump. That's the longest decline since 1954, when the end of the Korean War caused a slump in Japanese industrial sales to the US military. Malaysia's Kuala Lumpur Composite Index dropped 1.7 per cent after trading resumed following a one-day suspension because of a systems failure.
All Asian benchmark indexes fell this week, except Vietnam.
Most US stocks fell Thursday, completing the longest streak of weekly declines in four years, after Nvidia Corporation cut its sales forecast. Markets were closed Friday for a holiday.
MSCI's Asian index fell 13 percent in the first half, the worst start since 1992, as $400 billion in bank write downs and credit-related losses and rising oil prices offset efforts by central banks to bolster confidence in financial markets.