Asian Stocks Advance, Reversing Loss, After Report of Libya Oil Shipments
Japan Stocks Rise U.S., Australia Shares Climb Oil Retreat
Tomohiro Ohsumi/Bloomberg
Japanese stocks traded in the U.S. rose and Australian shares climbed after U.S. consumer sentiment increased more than forecast and oil eased from a 29-month high.
Japanese stocks traded in the U.S. rose and Australian shares climbed after U.S. consumer sentiment increased more than forecast and oil eased from a 29-month high. Photographer: Tomohiro Ohsumi/Bloomberg
Feb. 28 (Bloomberg) -- Jim Rogers, chairman of Rogers Holdings, talks about his investment strategy for global stocks and commodities. Gold advanced, approaching a record, as tensions in the Middle East boosted oil prices, increasing demand for precious metals as a protector of wealth and hedge against inflation. Rogers also discusses his strategy for the U.S. dollar. He speaks in Hong Kong with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Asian stocks rose after a report said oil shipments from Libya’s rebel-controlled eastern territory may have resumed, even as political unrest spread to Oman.
Aluminum Corp. of China Ltd., the country’s biggest producer of the lightweight material, climbed 3.2 percent in Hong Kong. Yue Yuen Industrial (Holdings) Ltd., a supplier of branded athletic shoes, climbed 1.9 percent. Sony Corp., which makes almost 70 percent of sales outside Japan, and Honda Motor Co., a carmaker that receives 84 percent of its revenue abroad, erased losses in Tokyo following the oil shipment report in the Wall Street Journal.
There is speculation that “production is back up again in Libya,” said Diane Lin, a Sydney-based fund manager at Pengana Capital Ltd., which has about $1 billion of assets. “Everyone has been worried about the oil prices and about inflation in emerging economies.”
The MSCI Asia Pacific Index rose 0.5 percent to 137.54 at 7:42 p.m. in Tokyo, set for a 0.7 percent advance this month. The gauge earlier fell as much as 0.5 percent as unrest that swept the Middle East yesterday spread to Oman.
The Wall Street Journal reported that oil shipments in Libya may have resumed, citing Hassan Bulifa, a member of Arabian Gulf Oil Co.’s management committee. A tanker carrying 700,000 barrels of crude was expected to depart Feb. 27 from Tobruk in northeast Libya, Bulifa was quoted as saying. The tanker may be bound for China, he said.
‘Markets Can Rebound’
“If there’s any hint oil supplies are going to return to normal, or that there won’t be a major problem, then markets can rebound,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages about $93 billion. “The trigger for the correction over the last week was the surge in the oil price on the back of worries about supply and about the spread of the turmoil from Libya to other countries.”
The MSCI gauge last week dropped 2.1 percent as crude oil climbed above $100 a barrel amid escalating violence in Libya, which has the largest oil reserves in Africa.
“The higher oil price had investors concerned over future economic growth,” said Chris Stott, who helps oversee about $400 million at Wilson Asset Management in Sydney. “If oil shipments have resumed in Libya, then it doesn’t put as much of a restraint on global growth.”
Japan’s Nikkei 225 Stock Average rose 0.9 percent today. Hong Kong’s Hang Seng Index gained 1.4 percent and China’s Shanghai Composite Index increased 0.9 percent. South Korea’s Kospi Index dropped 1.2 percent.
Australia’s S&P/ASX 200 Index slid 0.1 percent before the entire market was suspended at 2:48 p.m. in Sydney due to a glitch on the exchange’s computer system.
U.S. Futures
Futures on the Standard & Poor’s 500 Index dropped 0.2 percent today. The benchmark gauge for U.S equities rose 1.1 percent on Feb. 25 as confidence among American consumers beat forecasts.
In Hong Kong, Aluminum Corp. advanced 3.2 percent to HK$7.69 and Yue Yuen rose 1.9 percent to HK$24.50.
Honda gained 0.1 percent to 3,545 yen in Tokyo, reversing a drop of as much as 2 percent, while Sony climbed 0.9 percent to 2,993 yen, erasing a 1.9 percent loss earlier.
Mizuho Financial Group Inc. rallied 1.8 percent to 168 yen amid speculation Japan’s third-biggest bank by market value is planning to make several units, including Mizuho Securities Co., wholly-owned subsidiaries.
Mizuho Speculation
The bank is discussing purchasing the remainder of Mizuho Securities, Mizuho Trust & Banking Co. and Mizuho Investors Securities Co. through stock-swap deals with minority shareholders, Nikkei English News reported on Feb. 26, without saying where it got the information.
Buying the rest of the units may bolster Mizuho’s capital ratio under stricter global rules and improve operations, said Tokyo-based Hironari Nozaki, an analyst at Citigroup Inc.
Shares of Mizuho Securities, Mizuho Trust & Banking, and Mizuho Investors rallied 12 percent, 6 percent and 7 percent respectively.
South Korean builders declined amid speculation the unrest in the Middle East will hurt demand or delay ongoing projects. Daewoo Engineering & Construction Co. lost 6.9 percent to 10,750 won in Seoul and GS Engineering & Construction Corp. fell 3.6 percent to 99,300 won.
“Sentiment towards construction companies continues to be weak because of the Middle East concerns,” said Kim Young Joon, head of equities at NH-CA Asset Management Co. in Seoul, which manages the equivalent of $8.8 billion in assets.
Protesters Reported Killed
Hundreds of Omanis, many unemployed, gathered in a sit-in for a second day in the city of Sohar, refusing to go home after a pledge by the nation’s ruler to provide jobs.
Two demonstrators were killed and several were wounded in clashes with police earlier yesterday, according to hospital and Omani government officials. Oman, with a population of about 2.7 million Omanis and 600,000 expatriates, produces some 800,000 barrels of oil a day.
Among other stocks that fell today, NEC Corp. slumped 3.4 percent to 225 yen in Tokyo after Goldman Sachs Group Inc. downgraded Japan’s largest maker of personal computers. Goldman lowered its recommendation for the shares to “neutral” from “buy.” Nikko Cordial also cut its rating on the stock to “underperform” from “neutral.”
NEC late last week cut its net-income forecast for the current fiscal year ending March 31 to break even, citing falling information-technology services sales.
“The downwards forecast revision by NEC is bad,” said Tomomi Yamashita, an analyst at Shinkin Asset Management Co., which oversees about $6 billion. “The concern is whether this is spreading to other IT related companies. It highlights that domestic demand is weak.”
To contact the reporters on this story: Shani Raja in Sydney at sraja4@bloomberg.net. Sarah Jones in Sydney at sjones35@bloomberg.net;
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
Rate this Page