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Asian Markets Close Mixed on Oil Prices
Monday June 20, 7:28 am ET
Asian Markets Close Mixed As Soaring Oil Prices Spook Investors Across Region


HONG KONG (AP) -- Asian markets closed mixed Monday as record-high oil prices spooked investors across the region.
Japan's key stock index declined for the first time in seven sessions as the oil prices put a damper on the market. The Nikkei 225 Index fell 30.68 points, or 0.27 percent, to 11,483.35 points on the Tokyo Stock Exchange.

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Investors often worry when oil prices rise because it could raise costs for companies and erode profits.

Crude futures reached US$59.18 in Asian trade Monday, hitting a new all-time high on worries that demand will outpace refineries' ability to produce diesel and gasoline in the second half of 2005.

Big exporters like Sony Corp., TDK Corp., Honda Motor Co. and Nissan Motor Co. declined. But oil refiners and developers benefited from the higher crude oil prices. Nippon Oil, AOC Holdings and Japan Petroleum Exploration all rose.

In currency trading, the dollar was trading at 108.70 yen late Monday, down 0.16 yen from late Friday, but above the 108.55 yen it bought in New York later that day. The euro rose to US$1.2233 from US$1.2129 late Friday, and to 132.99 yen from 132.12 yen.

In Hong Kong, shares rose slightly, with oil stocks up on higher oil prices, while investors shrugged off mortgage rate hike by the city's largest lender. The blue chip Hang Seng Index advanced 33.74 points, or 0.2 percent, to 13945.77 after trading between 13908.70 and 13966.91 during the session.

Elsewhere:

BOMBAY: Indian shares climbed higher, with the Bombay Stock Exchange's 30-stock Sensitive Index, or Sensex ending at a record high on strong gains in shares of Reliance group companies. The Sensex advanced 78.03 points, or 1.1 percent, to 6984.55.

JAKARTA: Indonesian shares reversed early losses to end slightly higher on confidence among foreign investors of continued economic recovery. The Jakarta Stock Exchange's Composite Index ended up 5.892 points, or 0.5 percent, at 1147.71.

KUALA LUMPUR: Malaysian shares fell marginally as high oil prices fanned fears of a global economic slowdown and hurt investor sentiment. The weighted Composite Index of 100 blue-chip stocks closed down 0.31 point, or 0.03 percent, at 896.75 points.

MANILA: Philippines shares declined, snapping a five-day advance as investors cashed in amid lingering political concerns and soaring oil prices. The 30-company Philippine Stock Exchange Index closed down 6.46 points, or 0.3 percent, at 2,004.71. The broader All Shares Index lost 3.65 points to end at 1,212.87.

SEOUL: South Korea's benchmark index dropped, hurt by the recent surge in global oil prices, after breaking above 1,000 points last week. The Korea Composite Stock Price Index, or Kospi, fell 9.03 points, or 0.9 percent, to 994.65.

SHANGHAI: Chinese shares rose after the government announced over the weekend plans to expand state shareholding reforms, raising hopes for changes beneficial to private investors. The benchmark Shanghai Composite Index surged 30.01 points, or 2.8 percent, to 1,115.62.

SINGAPORE: Singapore shares declined due to higher oil prices and generally weak sentiment in the Asian markets. The Straits Times Index ended down 11.77 points, or 0.53 percent, at 2197.38.

SYDNEY: Australian shares rose to a record high early but later retreated to end lower as oil prices weighed on stock prices. The benchmark S&P/ASX 200 index closed 6.6 points, or 0.2 percent, down at 4305.6 points.

TAIPEI: Taiwan's shares ended flat, with turnover dropping sharply as retail investors retreated to the sidelines after the index's recent gains. The weighted price index of the Taiwan Stock Exchange rose 3.33 points, or 0.05 percent, to 6296.89.

WELLINGTON: New Zealand stocks declined after trading was interrupted for five hours because of a major telecommunications network failure. The NZSX-50 ended down 12.96 points, or 0.4 percent, at 3168.05.





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