Asian stocks tumble on Arab turmoil

HONG KONG: Asian stocks tumbled on Wednesday following a surge in crude prices caused by concerns about a wave of instability in the oil-rich Middle East and North Africa.

Tokyo's Nikkei dived 2.43 percent, or 261.65 points, to 10,492.38, its biggest loss since August 31, while Hong Kong's Hang Seng ended down 1.49 percent, or 347.76 points, at 23,048.66.

Shanghai edged down 0.18 percent, or 5.11 points, to 2,913.81, while Sydney's S&P/ASX 200 ended down 0.48 percent, or 23.2 points, at 4,803.2.

Seoul closed down 0.57 percent, or 11.06 points, at 1,928.24 Sentiment has been hammered as the price of crude sits a highs not seen since before the global downturn in 2008.

New York's benchmark crude oil futures contract shot back above $100 a barrel in Asian trade, having crossed the psychological threshold last week for the first time since October 2008.

The contract for April delivery, West Texas Intermediate, rose to a high of $100.64 a barrel during the day before pulling back to $99.44 in the late afternoon, down 19 cents from the day before.

Brent North Sea crude for April traded at $114.64, down 78 cents. Safe-haven gold was also riding high, closing at $1,428.70-$1,429.70 an ounce in Hong Kong, after striking a new record on the London Bullion Market of $1,434.50 on Tuesday.

Inflation concerns hit traders in Seoul as new figures showed prices rose at their fastest pace in 27 months in February fuelled in part by rising world food prices and Middle Eastern turmoil pushing up energy costs.

With pressure increasing for an early rate hike, the head of the finance ministry's economic policy bureau, Yoon Jong-Won, acknowledged that "shocks from soaring international crude oil prices were bigger than expected."

John Milroy, a wealth investment adviser at Macquarie in Sydney, said political pressures appeared to be rising in the Middle East, with Libya still in turmoil and renewed unrest seen on the streets of Tehran on Tuesday.-AFP