Markets

Asia stocks mixed on Middle East woe, oil rises

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There was little reaction to a G20 meeting in Paris that agreed on a set of indicators aimed at avoiding another global downturn.

Hong Kong fell 0.47 percent, or 109.82 points, to 23,485.42 and Sydney ended 0.74 percent, or 36.7 points, lower at 4,900.0.

Seoul shed 0.39 percent, or 7.84 points, to 2,005.30.

However, Tokyo overcame morning losses to end 0.14 percent, or 14.73 points, higher at 10,857.53, a near 10-month high.

Shanghai gained 1.12 percent, or 32.46 points, to close at 2,932.25, despite the central bank's decision Friday to hike the amount of money lenders must keep in reserve, as it struggles to keep inflation under control.

Investors are growing more concerned about the crisis in the Arab world, where the son of Libya's leader warned of a "bloodbath" if the government's offer of reforms was not accepted by protesters, while Bahrain has also been rocked by unrest.

The energy-rich Middle East has been rocked by revolutions in Tunisia and Egypt, with Iran, Morocco and Yemen also seeing demonstrations.

"There is a bit of nervousness as violence in the Middle East and around is continuing to get worse and investors are just starting to get worried about that side of the world," Hamilton Hindin Greene broker Grant Williamson told Dow Jones Newswires in New Zealand.

Human Rights Watch said it feared a catastrophe in Libya as at least 233 people were dead after a brutal crackdown on demonstrators demanding an end to Moamer Kadhafi's 41-year rule.

His son Saif al-Islam Kadhafi offered reforms but said the country would be destroyed by civil war if protests topple the leadership.

The regional troubles sent oil higher in Asian trade due to worries about possible supply problems.

Brent North Sea crude for April delivery soared $1.13 to $103.65 per barrel in the afternoon, and New York's main contract, light sweet crude for March, rose $1.17 to $87.37.

"Both benchmarks have really zoomed ahead this morning. The main driver is really the unrest in the Middle East," said Victor Shum, senior principal for Purvin and Gertz energy consultants in Singapore.

"Libya is a member of OPEC and even though Libya's oil production isn't very significant on a global basis, it's really threatening close to the main suppliers of crude oil to the world, mainly Middle East and North Africa," he told AFP.

Some investors were wary after the Chinese central bank's move to hike the reserve requirement ratio for the second time this year -- and two weeks after it raised interest rates.

The announcement raised concerns that China's economy could slow substantially, leading to weaker exports by many of its trading partners.

But resource stocks led Shanghai higher on the back of rising energy prices, offsetting losses among banks and property firms caused by the People's Bank of China's decision to hike the reserve requirement for lenders.

The bank's move comes as the country's leaders struggle to keep inflation under control, with the consumer price index hovering near two-year highs.

Concerns over the rising cost of borrowing for Portugal stoked new European debt concerns.

The euro fetched $1.3674 in Tokyo afternoon trade, compared with $1.3691 in New York late Friday.

The single currency also traded at 113.65 yen against 113.92 in New York, after rising briefly in Asia to 113.97 yen, the highest since January 27.

The dollar changed hands at 83.08 yen, down from 83.12 in New York.

Markets were unmoved by the G20 finance ministers' talks, which agreed on what economic indicators to use to evaluate and tackle the economic imbalances at the heart of the global crisis.

"The weekend's G20 meeting was something of a damp squib," said National Australia Bank strategist John Kyriakopoulos, adding that the agreement "didn't go far as to set numerical targets".

"Indicators such as public debt, fiscal deficits, private savings, and the trade balance will all be used. However, China prevented the addition of currency reserves and exchange rates to the list," he said in a note.

Gold closed at $1,396.50-$1,397.50 an ounce in Hong Kong, up from Friday's close of $1,386.00-$1,387.00.

In other markets:

Singapore fell 0.53 percent, or 16.32 points, to 3,070.60.

Keppel Corp dipped 2.39 percent to Sg$11.44 and Singapore Airlines rose 0.56 percent to Sg$14.34.

Taipei ended flat, edging 4.62 points down to 8,839.22.

Integrated circuit design house MediaTek fell 1.17 percent to Tw$339.0 while Yung Shin Pharmaceutical Industry Co was 2.22 percent higher at Tw$41.45.

Manila ended 0.36 percent, or 13.80 points, lower at 3,837.44.

Aboitiz Power fell 0.8 percent to 27.50 pesos, Cebu Air was off 0.1 percent at 89.70 and Energy Development rose 2.1 percent to 5.84.

Kuala Lumpur closed up 0.55 percent, or 8.29 points, at 1,525.85

Gaming group Genting gained 2.30 percent to 10.58 ringgit, top bank Maybank rose 3.10 percent to 8.86 while logistics firm MMC Corp slid 2.70 percent to 2.87.

Jakarta fell 0.11 percent, or 3.85 points, to 3,497.64.

Car maker Astra fell 1.8 percent to 52,300 rupiah, Bank Danamon lost 4.5 percent to 6,350 rupiah and gas and oil producer Medco slid 4.6 percent to 3,150 rupiah.

TV company Indosiar Karya rose 6.3 percent to 1,010 rupiah.

Wellington closed down 0.90 percent, or 30.81 points, at 3,381.93.

Telecom shed 2.2 percent to NZ$2.20, Fletcher Building dropped 1.1 percent to NZ$8.30 and exporter Fisher & Paykel Healthcare declined 1.6 percent to NZ$3.04.

Bangkok edged up 0.10 points, to 995.67.

Coal miner Banpu gained 1.0 percent to 768.00 baht, while PTT fell 0.9 percent to 331.00 baht.

Mumbai rose 1.25 percent, or 226.79 points, to 18,438.31, on expectations of reforms to be announced in the federal budget on February 28.

Software and oil stocks led gains.

India's third largest software exporter Wipro rose 4.12 percent, or 17.8 rupees, to 450.25, while the largest software outsourcer TCS rose 4.24 percent, or 46.25 rupees, to 1,136.65.

Reliance ADA group firm Reliance Infrastructure rose 2.58 percent, or 15.65 rupees, to 621.25 on bargain hunting, after falling last week on fears over an alleged telecoms fraud that has robbed the government of billions of dollars.

The group's stocks fell after Reliance ADA group chairman and tycoon Anil Ambani met police investigators to answer questions over the probe.

Reliance Communications rose 0.59 percent, or 0.55 rupees, to 93.7.

Copyright AFP (Agence France-Presse), 2011