Asian stocks tumble on inflation fears
HONG KONG, June 12: Asian stocks fell heavily on Thursday, following an overnight tumble on Wall Street driven by another spike in oil prices and new inflation worries.
Dealers said more glum news from the Federal Reserve about the US economy also fuelled the decline. Tokyo closed 2.08 per cent off and Sydney fell 2.5 per cent, while Hong Kong was 1.3 per cent down.
Shares in China lost 2.21 per cent, clawing back some morning losses that had seen a 3.25 per cent slide. Other Asian markets were also in the red, with Taiwan 3.4 per cent off and Singapore 0.87 down.
Soaring food and fuel costs have set off global inflation concerns, with crude hovering near the 140 dollar per barrel level.
Oil fell in Asian trade despite the fact that US crude reserves dipped for the fourth straight week, but trade was volatile and analysts expected prices to keep rising in the near-term.
TOKYO: Japanese shares closed 2.08 per cent down after Wall Street tumbled overnight as a fresh spike in crude oil prices hit sentiment, dealers said.
The benchmark Nikkei-225 index lost 294.88 points to 13,888.60, ending below the key 14,000 points level. The broader Topix index of all first-section shares dropped 26.89 points or 1.93 per cent to 1,363.14.
Developments overseas were pulling down shares, said Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking Corp.
HONG KONG: Hong Kong share prices closed down 1.3 per cent, dealers said.
The Hang Seng Index ended 303.74 points at 23,023.86 off a low of 22,695.10 and a high of 23,023.86. It was the index's lowest closing figure since April 1.
SYDNEY: Australian shares closed 2.5 per cent lower, dealers said.
The benchmark SP/ASX200 index fell 138.1 points to 5329.2, while the broader All Ordinaries lost 128.7 points to 5433.2.
ABN Amro Morgans private client adviser Peter Knight said stocks exposed to high oil prices or the US economy lost ground and the major banks were also weaker.
Resources giant BHP Billiton fell 3.8 per cent to 41.80, Rio Tinto lost 1.7 per cent to 129.88 and Fortescue was down 2.9 per cent at 9.40.
SINGAPORE: Singapore share prices closed 0.87 perc ent lower in subdued trading which saw the main Straits Times Index (STI) dip below the psychologically important 3,000 points level, dealers said.
The blue chip STI closed 26.62 points lower at 3,020.15 on volume of 1.27 billion shares worth 1.56 billion Singapore dollars (1.14 billion US).
KUALA LUMPUR: Malaysian share prices closed down 0.3 per cent amid a decline on regional markets and local concern over rising inflation, dealers said.
The Kuala Lumpur Composite Index fell 3.74 points to 1225.54.
Market sentiment was weighed down by the rebound in crude oil prices, declines in regional markets and concerns over rising inflation, a dealer told Dow Jones Newswires.
JAKARTA: Indonesian shares closed 1.4 per cent higher, dealers said.
The Jakarta Composite Index ended up 34.22 points at 2,409.01 on volume of 3.46 billion shares worth 6.52 trillion rupiah (704.16 million dollars).
Today the market was driven upward especially by mining and plantation stocks, said Pardomuan Sihombing, a dealer at Paramitra Alfa Sekuritas.
Bumi Resources ended up 6.2 per cent at 8,550 rupiah, Bukit Asam gained 1.4 per cent at 15,000 and Indika added 1.5 per cent at 3,475.
WELLINGTON: New Zealand share prices closed 1.38 per cent lower, dealers said.
The NZX-50 gross index fell 48.21 points to 3,439.22 on turnover worth 140.3 million dollars (105.8 million US).
Investor confidence in markets remains a problem. That's rolled over into New Zealand today for sure, said Nigel Scott of ABN Amro Craigs.
MUMBAI: Indian shares closed 0.43 per cent up in volatile trade, dealers said.
The benchmark Mumbai 30-share Sensex index rose 64.88 points to 15,250.2, recovering from the day's low of 14,747.99.
The markets were negative on the repo rate hike but recovered as positive industrial production data come through, said Advait Date, a dealer with brokerage BHH Securities.
The Reserve Bank of India said it was raising its repo rate, at which commercial banks borrow funds from the central bank, from 7.75 per cent effective immediately.—AFP