Asia stocks track Wall Street as oil rout hits confidence

GMT 07:11 2015 Thursday ,10 December

Arab Today, arab today Asia stocks track Wall Street as oil rout hits confidence

Depressed crude prices continue to hurt some energy stocks
Hong Kong - AFP

A sense of unease spread across Asian stock exchanges on Thursday with investors spooked by the sharp sell-off in oil sending most regional markets lower.

With crude sitting around seven-year lows energy firms came under further pressure, following more losses on Wall Street.

"Today is all about risk-off moves. Oil is still excessively low at this price -- concerns this will be the status quo is making investors avoid risk for now," Mitsushige Akino, executive officer at Ichiyoshi Asset Management Co. in Tokyo, told Bloomberg News.

While oil prices edged up in early Asian trade, the gains were marginal compared with the losses of around nine percent suffered since the OPEC cartel on Friday decided against cutting output despite a global glut and weak demand.

Depressed crude prices continue to hurt some energy stocks, with Sydney-listed Woodside Petroleum down 1.4 percent, Origin 1.9 percent lower and Oil Search off more than two percent.

In Hong Kong, CNOOC eased 1.7 percent. However, bargain-buying also provided some support with PetroChina up in Hong Kong and Inpex in Tokyo ticking higher.
Japan's Nikkei index slipped 1.3 percent by lunch, Sydney slipped 1.6 percent and Seoul was 0.1 percent off, while Hong Kong also edged down.

The falls followed a sell-off on Wall Street that saw all three indexes end in the red.

Shanghai bucked the trend, however, to rise 0.5 percent on hopes that a string of recent weak economic data will lead Beijing to unveil a fresh round of stimulus measures.

The dollar was struggling to make up ground against most of its rivals, with an expected Federal Reserve hike in borrowing costs next week largely priced in.

The euro held its gains against the greenback after breaking $1.1 in US trade, with last week's below-forecast stimulus from the European Central Bank providing support.

The Australian dollar rallied one percent after another surprisingly good jobs report eased talk of another rate cut by Canberra.

And the New Zealand dollar added 0.3 percent on talk that Thursday's rate cut to a record low by Wellington would be the last for some time. South Korea's won put on 0.4 percent as the country left its own borrowing costs unchanged.

- Key figures around 0300 GMT -

Tokyo - Nikkei 225: DOWN 1.3 percent at 19,049.66 (break)

Euro/dollar: UP to $1.1010 from $1.1026 late Wednesday

Dollar/yen: DOWN to 121.44 yen from 121.40 yen

New York - Dow: DOWN 0.4 percent at 17,492.30 (close)

London - FTSE 100: DOWN 0.1 percent at 6,126.68 points (close)


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