Asian markets slip on oil concerns
ASIAN markets mostly retreated yesterday, with energy firms hit by sinking oil prices as fresh fears about a planned output cut by major producers was fanned by a report Russia will not take part.
Crude has been in the ascendancy since last month when the Organization of Petroleum Exporting Countries, and later Moscow, agreed to output cuts in a bid to support prices.
But both contracts tumbled more than 1 percent on October 25 as the Interfax news agency said Russia’s envoy at OPEC, Vladimir Voronkov, had said output cuts are not “an option for us”.
And it extended losses in Asia yesterday, putting pressure on regional energy firms, while eyes are on the release later in the day of US stockpiles figures.
Sydney-listed Oil Search sank 3pc while CNOOC lost around 2pc in Hong Kong and Tokyo’s Inpex shed more than 1pc.
Broader markets were also well into negative territory, with Hong Kong ending down 1pc and Shanghai closing 0.5pc off.
Sydney tumbled 1.5pc as a surge in inflation tempered expectations that Australia’s central bank will cut interest rates any time soon.
Seoul, Wellington and Manila each fell more than 1pc, while Singapore was also sharply lower.
However, Tokyo reversed morning selling to end slightly higher.
Apple suppliers were mixed despite the US titan announcing a fall in revenue and profits, then issuing a below-par sales outlook for the crucial holiday period.
The seoul-based SK Hynix rallied 4pc while Japan Display was up 1.4pc in Tokyo but Hon Hai Precision in Taipei and TSMC both turned lower. –