Oil, US stocks ease pressure on Asian markets

HONG KONG: Asian stock markets edged higher on Wednesday, with Tokyo and Hong Kong buoyed by easing world oil prices and signs of improvement in their economies.

Tokyo's Nikkei Index ended the session up 0.61 percent, or 64.31 points, at 10,589.50, while Hong Kong rose 0.42 percent, or 98.41 points, to 23,810.11.

Shanghai edged up 0.07 percent, or 2.21 points, to 3,002.15, while Sydney fell 0.84 percent, or 40.40 points, to 4,767.80.

New York crude oil dropped below $105 after Saudi Arabia promised it could offset any supply disruption caused by political turmoil in parts of the Middle East and North Africa.

Crude prices hit two-and-a-half-year highs this week due to the upheavals, with some analysts fretting that Saudi Arabia could itself see a rise in unrest.

However Oil Minister Ali Naimi said his country's spare capacity was sufficient to make up any supply shortfalls and the kingdom was also developing a "special mix" of oil that resembled Libya's light sweet crude.

"Current supplies in the market are very adequate, and there is an extra output capacity that could be used if needed," the state SPA news agency quoted him as saying.

New York's main contract, light sweet crude for April delivery, fell 67 cents to $104.35 per barrel. Brent North Sea crude for April dropped 76 cents to $112.30.

Wall Street was buoyed by the Saudi minister's words and a survey showing more upbeat small-business sentiment.

Reflecting the improved sentiment, prices of safe-haven gold dipped, with the precious metal ending at $1,426.00-$1,427.00 an ounce in Hong Kong, down from Tuesday's close of $1,428.00-$1,429.00.

Tokyo was lifted by news that core private-sector machinery orders, a top indicator of corporate capital spending, rose a stronger-than-expected 4.2 percent in January from the month before.

The positive data, which excluded volatile demand from power companies and for ships, followed a 1.7 percent rise in December and marked the biggest increase since August.

In Hong Kong, Cathay Pacific shares jumped as the company said its profits had nearly tripled last year to HK$14.05 billion ($1.80 billion) and that it would buy 25 new planes from Airbus and Boeing.

Shanghai's Composite Index trod water however after rising 3.3 percent over the previous three sessions. Chinese coal and gold producers led losses as world oil and gold prices slipped.

There was a note of caution from Jian Wei, senior dealer at City Index Australia, in Sydney, where weaker commodity prices were dragging down mining company stocks.

"The longer the Libyan crisis hangs around the more there will be concern amongst investors. At this stage, there are already speculations that if this persists further, it may impact the recovery in some economies," he told Dow Jones Newswires.

On Asian currency markets the dollar rose against the euro as oil prices eased and worries increased about eurozone debt problems.

The euro retreated to $1.3861 in late afternoon Asian trade from 1.3905 in New York late Tuesday. The single European currency was at 114.87 yen compared with 114.91 yen in New York earlier.

The dollar firmed to 82.86 yen from 82.64 yen.

In other markets:

-- Singapore fell 0.35 percent, or 10.94 points, to 3,092.90.

Singapore Airlines rose 1.02 percent to 13.86, while United Overseas Bank fell 0.95 percent to 18.78.

-- Seoul closed 0.26 percent higher, with the benchmark KOSPI gaining 5.15 points to 2,001.47.

-- Manila rose 0.72 percent, or 27.99 points, to 3,926.86.

Conglomerate Alliance Global rose 1.37 percent to 11.86 pesos, Philippine Long Distance Telephone advanced 0.89 percent to 2,260 pesos, while Megaworld climbed 1.90 percent to 2.15 pesos.

-- Wellington fell 0.20 percent, or 6.75 points, 3,414.42.

-- Taipei edged up 0.03 percent, or 2.27 points, to 8,750.02.

Ruentex Industries rose 1.89 percent to Tw$75.3, while Taiwan Semiconductor Manufacturing Co was 0.14 percent lower at Tw$71.4.

-- Jakarta rose 0.51 percent, or 18.36 points, to 3,598.68.

Carmaker Astra International rose 2.3 percent to 56,450 rupiah, while telecommunication company Indosat jumped 5.0 percent to 5,250 rupiah.

-- Kuala Lumpur rose 0.59 percent, or 6.03 points, to 1,523.69.

Petronas Chemicals gained 3.9 percent to 6.70 ringgit, Lafarge Malayan Cement rose 1.6 percent to 7.40, while plantation KL Kepong fell 0.7 percent to 20.86 and gaming Genting Malaysia dropped 1.7 percent to 3.37 ringgit.

-- Bangkok fell 0.15 percent, or 1.56 points, to 1,017.01.

Coal miner Banpu fell 0.5 percent to 732.00, while PTT fell 1.1 percent to 344.00.

-- Mumbai edged up 0.16 percent with the benchmark 30-share Sensex Index rising 30.3 points to 18,469.95.

Sentiment was helped after India's ruling Congress party said late Tuesday it had clinched a deal with a key regional ally, allowing the embattled ruling coalition to retain its parliamentary majority.

Telecom, auto and property stocks rose. Reliance Communications jumped 9.36 percent or 8.5 rupees to 99.3 on bargain-hunting, while motorcycle maker Bajaj Auto rose 2.37 percent or 14.35 rupees to 620.5.