Major Asian markets mostly declined Monday as rising oil prices fueled fears about inflation and economic growth, with Japanese stocks facing added pressure from political setbacks to the respective ruling governments.
The Nikkei 225 index in Tokyo stumbled 188.64 points, or 1.8%, to 10,505
Hong Kong’s Hang Seng Index fell 95.67 points, or 0.4%, to 23,313.20
Earlier in the day, April crude-oil futures climbed as high as $106.45 U.S. a barrel on Globex amid concerns about the impact on the global economy from mounting energy costs amid political tensions in the Middle East. More recently, they were at $105.86 U.S. a barrel, but still up $1.45 from Friday’s closing level in New York.
Across the region, several energy shares outperformed stock benchmarks in their respective countries, with Cnooc rising 1.9% and PetroChina Co. adding 0.4% in Hong Kong, Inpex Corp. advancing 1.6% in Tokyo, and Santos climbing 1.6% in Sydney.
But most other sectors lost ground on curtailed appetite for equities, with airlines continuing to be among the badly hit. Virgin Blue Holdings shed 4.1% in Sydney, Korean Air Lines Co. fell 3.1%, and Air New Zealand dropped 2.3%. Cathay Pacific Airways dropped 3.5% in Hong Kong.
The fall in Tokyo was aggravated by domestic political turmoil, with Foreign Minister Seiji Maehara — one of the country’s more popular politicians — resigning Sunday over illegal political donations from a foreign national.
The minister’s departure further complicates Prime Minister Naoto Kan’s nine-month grip on power, given that his Democratic Party-led government already faces gridlock in the opposition-controlled Upper House over budget-related bills.
Exporters were hit especially hard, with Canon Inc. sliding 2.4% and Honda Motor Co. losing 3.1%, while Nissan Motor Co. shed 2.6%.
The euro was at $1.3971 from $1.3990 U.S. in late New York trade, and at ¥114.71, from ¥115.10. The dollar was buying ¥82.10 from ¥82.30 late Friday in New York.
CHINA
Chinese shares posted solid gains on the back of supportive economic policies
The Shanghai CSI 300 Index gained 63.84 points, or 2%, to 3,334.51
The advance in Shanghai came after China’s annual legislative session rolled out several economic goals over the weekend, including a commitment to raise income levels and a call for companies to lift wages to match productivity gains.
Chinese Premier Wen Jiabao said the country’s economic growth target for 2011 will be maintained at 8%, while also pledging that taming inflation will be the government’s top economic policy priority this year.
China Shenhua Energy Co. and China Coal Energy Co. jumped by their 10% daily limit in Shanghai; among gold miners, Zijin Mining Group Co. and Shandong Gold-Mining rose 2% and 2.2%, respectively.
In other markets;
Taiwan’s Taiex Index slid 70.61 points, or 0.8%, to 8,713.79
Korea’s Kospi Index shed 24.41 points, or 1.2%, to 1,980.27.
Singapore’s Straits Times Index poked ahead 5.21 points, or 0.2%, to 3,066.52
New Zealand’s NZX 50 prospered 11.95 points, or 0.4%, to 3,430.05
Australia’s S&P/ASX 200 slumped 66.40 points, or 1.4%, to 4,797.90
