Falling oil prices and a worse-than-expected slowdown in Chinese manufacturing activity sent stocks sharply lower in Hong Kong and Australia on Monday, while Japan provided a haven for the region’s investors.
In Japan, the Nikkei 225 jumped 130.25 points, or 0.8%, to 17,590.10. Lower crude oil prices helped boost the U.S. dollar against the Japanese yen. The U.S. dollar traded as high as 119 yen, its highest level since Aug. 9, 2007.
In Hong Kong, the Hang Seng index plummeted 620 points, or 2.6%, to 23,367.45. An index of Hong Kong-listed China shares slumped 2.9%, marking the biggest one day fall since February.
Oil extended its fall to below $65 U.S. a barrel following a surprise move Thursday by the world’s biggest oil producing nations to maintain their production target levels, meaning a glut in the market is likely to remain. Analysts predict prices could fall as low as $60 U.S. a barrel in the near term.
Australia’s S&P ASX 200 benchmark index closed down 2%, as a gauge of its energy stocks fell 6.4%. Still, Qantas Airways, which benefits from lower fuel costs, advanced 4.7% to break above A$2.00 for the first time in more than three years.
CHINA
Downbeat figures from China deepened stock losses in Hong Kong. An official gauge of manufacturing activity came in at 50.3 for November, below expectations of a reading of 50.6 and down from 50.8 in October. An unofficial gauge of nationwide manufacturing activity from HSBC fell to a six-month low.
Shanghai’s CSI 300 index gained 10.99 points, or 0.4%, to 2,819.81
The index rose 7.9% last week as investors focused on the central bank’s surprise move on Nov. 21 to cut interest rates to help lift the economy.
In other markets;
Singapore’s Straits Times Index faded 44.86 points, or 1.3%, to 3,305.64
The Taiex index in Taiwan stepped back 69.44 points, or 0.8%, to 9,117.71
Korea’s Kospi index erased 15.56 points, or 0.8%, to 1,965.22
New Zealand’s Exchange 50 recovered 5.18 points, or 0.1%, to 5,429.62
Australia’s S&P/ASX 200 fell back 105.28 points, or 2%, to 5,207.72.
