Asia Loses as Oil Prices Shoot Higher

Shares in Asia-Pacific tumbled on Tuesday, with major indexes in China and South Korea falling at least 1%.

In Japan, the Nikkei 225 backtracked 267.59 points, or 0.9%, to 28,230.61.

The Japanese yen traded at 113.26 per U.S. dollar after yesterday’s weakening from below 112.8 against the greenback.

In Hong Kong, the Hang Seng stumbled 362.50, or 1.4%, to 24,962.59,

Shares of China Evergrande New Energy Vehicle, on the other hand, surged 4.6% after the firm vowed on Monday to start producing electric vehicles next year. The company is linked to debt-laden developer Evergrande, which has already missed multiple coupon payments for its bonds in recent weeks.

Oil prices were higher in the afternoon of Asia trading hours, adding to gains after a recent surge above $80. International benchmark Brent crude futures rose 0.24% to $83.85 per barrel while U.S. crude futures advanced 0.11% to $80.61 per barrel.

The recent jump in oil prices comes as a rebound in global demand contributed to power shortages in major economies such as China. Last week, the Organization of the Petroleum Exporting Countries and its allies — a group collectively referred to as OPEC+ — also opted against a supply boost, further fueling the oil price rally.

The Australian dollar changed hands at $0.7355, above levels around $0.73 seen earlier in the trading week.

In other markets

In China, the CSI 300 dropped 52.35 points, or 1.1%, to 4,883.64.

In Taiwan, the Taiex docked 177.59 points, or 1.1%, to 16,482.84.

In Korea, the Kospi index dipped 39.92 points, or 1.4%, to 2,916.38

In Singapore, the Straits Times fell 1.44 points, or 0.1%, to 2,916.38

In New Zealand, the NZX 50 lost 23.11 points, or 0.2%, to 12,996.26

In Australia, the ASX 200 dumped 19.07 points, or 0.3%, at 7,280.73