Stocks fell across Asia Thursday, as a downturn in oil prices overnight rippled through the region, pressuring Chinese state-owned energy companies and major oil producers in Australia in particular.
In Japan, the Nikkei 225 fell another 155.18 points, or 0.9%, after Wednesday’s collapse of 400 points, to 17,257.40
In Hong Kong, the Hang Seng index tailed off 211.98 points, or 0.9%, to 23,312.54
In Japan, a weaker dollar hurt the Nikkei, marking a third straight losing session. As of the close of Tokyo trading, the greenback changed hands at ¥118.16, more than one yen lower than the previous day.
The 6.4% fall in Japanese core machinery orders in October — the first in five months — wasn’t cited by market participants as a trading factor, even though it bodes ill for a domestic economy struggling to recover its momentum after an April sales tax increase.
Among Hong Kong energy stocks that suffered the largest declines, Kunlun Energy Co fell 3.5%, and Cnooc Ltd. was off 1.5%.
In Hong Kong, the few gainers included Cathay Pacific Airways Ltd whose stock was up 2.0%.
Korea’s Kospi fell the most in the region, after the Bank of Korea held steady on interest rates at 2.0%.
In Australia, the energy sector was led lower by Santos Ltd. the country’s third-largest oil company. The stock fell 8.8% after the firm said it would slash capital spending by 26% next year and consider asset sales, as it tries to fortify its balance sheet against tumbling oil prices. Among Australia’s large-cap oil companies, it has been the hardest hit by crude oil’s plunge.
The losses stemmed from a 4.5% fall in benchmark U.S. crude overnight to $60.94 a barrel, its lowest level since July 2009 and the biggest one-day drop since Nov. 28, the session that followed the Organization of the Petroleum Exporting Countries’ decision to maintain its oil-output target. Prices were last at $61.10 U.S. a barrel.
In other markets;
Shanghai’s CSI 300 index shed 38.53 points, or 1.2%, to 3,183.01,
Singapore’s Straits Times Index slipped 7.11 points, or 0.2%, to 3,318.70
The Taiex index in Taiwan lost 19.09 points, or 0.2%, to 9,013.07
Korea’s Kospi index dropped 28.97 points, or 1.5%, to 1,916.59
New Zealand’s Exchange 50 skidded 21.51 points, or 0.4%, to 5,502.07
Australia’s S&P/ASX 200 moved lower 28.03 points, or 0.5%, to 5,230.97
