Asia report: Markets mixed as energy stocks take a beating
Markets in Asia finished in a mixed state on Monday, with energy plays under particular pressure after a serious slump in oil prices.
AUD/USD
$0.6524
03:02 26/04/24
GBP/NZD
NZD2.0962
03:01 26/04/24
Hang Seng
17,284.54
10:21 25/04/24
Nikkei 225
37,587.42
09:43 25/04/24
USD/JPY
¥155.6320
03:02 26/04/24
In Japan, the Nikkei 225 was up 0.76% at 21,812.00, as the yen weakened 0.26% against the dollar to last trade at JPY 113.25.
Of the energy stocks in Tokyo, Fuji Oil bucked the market trend to rise 1.6%, while Japan Petroleum Exploration was off 2.7% and JXTG dropped 2.26%.
On the mainland, the Shanghai Composite was down 0.14% at 2,575.81, and the smaller, technology-heavy Shenzhen Composite slipped 0.32% to 1,330.92.
Investors in China were still being reticent with their money ahead of a meeting between their president Xi Jinping and his US counterpart Donald Trump, due to take place on the sidelines of the G20 summit in Buenos Aires later this week.
South Korea’s Kospi was 1.24% higher at 2,083.02, while the Hang Seng Index in Hong Kong was ahead 1.73% at 26,376.18.
Energy stocks were on the back foot in Seoul too, with S-Oil down 3.21% and SK Innovation 1.75% weaker.
Oil prices plummeted to their lowest levels in over 12 months after Asian markets closed on Friday, as global concerns of an oversupply continued to grow.
It piles the pressure on the OPEC cartel of oil-producing nations, which is expected to agree an output cut at a meeting with its allies in Vienna next week.
Prices for the thick black stuff were thankfully starting to recover as the Asian region went to bed on Monday, with Brent crude last up 2.21% at $60.13 per barrel, and West Texas Intermediate adding 1.45% to $51.16.
In Australia, the S&P/ASX 200 slipped 0.78% to close at 5,671.60, led lower by the energy and materials subindices, which were off 2.46% and 2.47% respectively.
The major miners were under the cosh in the sunburnt country, with BHP down 3.55% in Sydney trading, while Fortescue Metals fell 3.99% and Rio Tinto lost 3.56%.
It came after a fall in metal prices late last week, over concerns that demand from China was growing weaker.
On the energy front, Beach Energy fell 3.93%, Oil Search was off 4.03%, and Woodside Petroleum was 2.27% lower.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 fell 0.4% to 8,662.37, led lower by retirement property developer Ryman Healthcare, which was off 3.9%.
Both of the down under dollars were stronger on the greenback, with the Aussie last 0.26% stronger at AUD 1.3791, and the Kiwi advancing 0.22% to NZD 1.4714.