Asian shares close mostly down

Published January 4, 2008

HONG KONG, Jan 3: Asian shares closed mostly down on Thursday after crude oil surged to a record $100 per barrel triggering a slide on Wall Street and stoking concerns about global economic prospects.

The oil price briefly hit 100 dollars on Wednesday, which together with weak American manufacturing data sent Wall Street into a spin.

Analysts said some investors were concerned about “stagflation” -- a situation of slowing economic growth and rising inflation, which is thought bad for stocks.

Hong Kong tumbled 2.44 per cent, Australia was down one per cent, Taiwan shed 1.67 per cent and Singapore slipped 1.85 per cent. Indian stocks fell 0.59 per cent after closing at a record high on Wednesday.

HONG KONG: Hong Kong share prices closed 2.44 per cent lower tracking falls on Wall Street and in Asia after oil hit 100 dollars per barrel, dealers said.

The Hang Seng index closed down 673.24 points at 26,887.28. Turnover was 90.14 billion Hong Kong dollars (11.56 billion US).

China Construction Bank lost 0.36 at 6.15, ICBC was down 0.35 at 5.22 and Bank of China dropped 0.07 at 3.66.

SYDNEY: Australian share prices closed down 1.0 per cent as a spike in the oil price and weak manufacturing figures sparked renewed fears of a US recession, dealers said.

The benchmark S&P/ASX 200 index fell 62.5 points to 6,290.7, while the broader All Ordinaries dipped 61.5 points to 6,372.6. Volume was 1.3 billion shares worth 3.5 billion dollars (3.1 billion US).

BHP Billiton fell 0.5 per cent to 40.10 and Rio Tinto closed down 2.39 dollars or 1.8 per cent at 131.61.

SINGAPORE: Singapore share prices closed 1.85 per cent lower after world oil prices briefly touched 100 US dollars a barrel, dealers said.

KUALA LUMPUR: Malaysian share prices closed little changed, dealers said.

The Kuala Lumpur Composite Index (KLCI) was down 0.3 of a point at 1,435.38.

The market continues to be in a mild correction mode and will stay like this in the immediate term, said Phua Kwee Hock, an analyst at SJ Securities.

Power company Tenaga was flat at 9.55 ringgit, Telekom Malaysia added 10 sen to 11.50 ringgit and Maybank dropped 10 sen to 11.40 ringgit.

JAKARTA: Indonesian share prices closed 0.6 per cent lower, pressured by a fall on Wall Street overnight and a spike in crude oil prices to a record 100 dollars per barrel, dealers said.

The Jakarta composite index closed down 16.44 points at 2,715.07.

Telkom was down 100 rupiah at 9,900. Car maker Astra International retreated 500 rupiah to 26,100. Bank Mandiri fell 125 rupiah to 3,375. Oil producer Medco surged 350 rupiah to 5,400.

WELLINGTON: New Zealand share prices closed 0.18 per cent lower, taking their cue from weaker overseas markets, dealers said.

The benchmark NZX-50 index fell 7.45 points to 4,033.93.

Market leader Telecom accounted for more than half of total volume on the local market, falling one cent to 4.34 dollars.

Fletcher Building was unchanged at 11.50 dollars after falling 10 cents in early trade and Fisher & Paykel Healthcare was down four cents at 3.45.

MUMBAI: Indian share prices fell 0.59 per cent as investors tracked falls on Wall Street where weak US data and record oil prices caused fresh global economic jitters, dealers said.

The 30-share Mumbai stock exchange Sensex index fell 120.1 points to 20,345.2, snapping three days of gains.—AFP

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