Asian markets drop as oil extends fall

SEOUL, Korea, Republic Of - Asian stock markets were mostly lower Tuesday as the price of oil extended losses following a 6-per cent plunge that was sparked by data showing a manufacturing slowdown in the world's two largest economies.

See Full Article

KEEPING SCORE: Tokyo's Nikkei 225 was flat at 17,864.70 and South Korea's Kospi dipped 0.3 per cent to 1,918.28. Hong Kong's Hang Seng was nearly unchanged at 19,590.37. The Shanghai Composite in mainland China rose 1.6 per cent to 2,732.81. Australia's S&P/ASX 200 dropped 0.4 per cent to 5,024.20. Stocks in Taiwan, Singapore, Indonesia and the Philippines were lower.

SLOWING MANUFACTURING: The Institute for Supply Management said on Monday that U.S. factory activity shrank in January for a fourth straight month as a strong dollar and weak demand overseas pinched American manufacturers. The ISM's manufacturing index followed a survey showing a slowdown in China's manufacturing. China's official survey found that manufacturing fell to its lowest level in more than three years.

OIL SLIDE: The two reports sent the price of oil sharply lower. Benchmark U.S. oil was down 48 cents to $31.14 per barrel in electronic trading on the New York Mercantile Exchange. On Monday, the price of U.S. benchmark oil plunged $2, or 5.9 per cent, to $31.62 a barrel in New York. Brent crude was down 46 cents to $33.82 in London.

ANALYST'S TAKE: "Manufacturing is (the) leading edge of a global growth slowdown," Tim Condon, head of Asia research at ING, said in a daily report. "We think the 50 per cent crash in global oil prices in the second half of 2014 caused the manufacturing slump by crushing commodity producers' spending. However, we also think that in 2015 weaker manufacturing, especially in China, began to drive down oil prices. The negative feedback loop is causing severe strains."

WALL STREET: On Monday, U.S. stock markets closed slightly lower after sharp losses. The Dow Jones industrial average fell 0.1 per cent to 16,449.18. The Standard & Poor's 500 finished down less than 0.1 per cent to 1,939.38 and the Nasdaq composite rose 0.1 per cent to 4,620.37.

CURRENCIES: The dollar fell to 120.86 yen from 120.95 yen in the previous trading session. The euro slipped to $1.0895 from $1.0900.



Advertisements

Latest Economic News

  • B.C. leader could drag Canada into unwanted battle with U.S. on softwood: expert

    Economic CTV News
    BURNABY, B.C. -- A vow by British Columbia's Liberal leader to fight American tariffs on softwood lumber may force the federal government to wage an unwanted battle with the United States, an international trade expert says. Source
  • Hacker threatens to release stolen copies of Netflix series

    Economic CTV News
    SAN FRANCISCO -- A hacker claims to have stolen the upcoming season of Netflix's hit series "Orange Is The New Black," and is asking for an unspecified ransom to not release the entire fifth season online. Source
  • Bombardier faces lengthy legal battle with Boeing that could hurt CSeries sales

    Economic CBC News
    Bombardier faces a lengthy legal battle with Boeing after the aerospace giant filed a complaint with the U.S. government and the process could hurt sales of the new CSeries commercial jet, say trade experts and industry analysts. Source
  • Bombardier faces lengthy legal battle with Boeing that may hurt CSeries sales

    Economic CTV News
    MONTREAL -- Bombardier faces a lengthy legal battle with Boeing after the aerospace giant filed a complaint with the U.S. government and the process could hurt sales of the new CSeries commercial jet, say trade experts and industry analysts. Source
  • Home Capital troubles may translate to higher interest rates for some borrowers

    Economic CTV News
    TORONTO -- Troubles at Home Capital Group may translate to higher mortgage rates for less creditworthy borrowers if concerns about the sector increase funding costs for other subprime lenders, experts say. "Inevitably this will likely effect all lenders in the alternative space as it puts the spotlight on the risk, and questions the integrity of some of the mortgages they are lending on," said Steve Pipkey co-founder of Vancouver-based Spin Mortgage. Source
  • Canada restarts free trade negotiations with South American trading bloc

    Economic CBC News
    Canada's hectic international trade agenda is about to get even busier, as it takes new steps toward formal free trade negotiations with Mercosur, the trading bloc that includes the key South American markets of Argentina, Brazil, Paraguay and Uruguay, CBC News has learned. Source
  • Canada restarts free trade negotiations with South America's Mercosur trading bloc

    Economic CBC News
    Canada's hectic international trade agenda is about to get even busier, as it takes new steps toward formal free trade negotiations with Mercosur, the trading bloc that includes the key South American markets of Argentina, Brazil, Paraguay and Uruguay, CBC News has learned. Source
  • Imperial Oil not idle amidst oilsands dealmaking, says CEO

    Economic CBC News
    Imperial Oil is reporting first-quarter earnings that reversed a loss in the same period of last year but fell short of analyst expectations. The Calgary-based oil producer and refiner says net income was $333 million or 39 cents per share in the three months ended March 31, boosted by a gain of $151 million on the sale of former refinery lands in Mississauga, Ont. Source
  • Imperial Oil posts first-quarter profit but falls short of forecasts

    Economic CBC News
    Imperial Oil is reporting first-quarter earnings that reversed a loss in the same period of last year but fell short of analyst expectations. The Calgary-based oil producer and refiner says net income was $333 million or 39 cents per share in the three months ended March 31, boosted by a gain of $151 million on the sale of former refinery lands in Mississauga, Ont. Source
  • U.S. economic growth weakened to 0.7 per cent in first quarter

    Economic CBC News
    The U.S. economy turned in the weakest performance in three years in the January-March quarter as consumers sharply slowed their spending. The result underscores the challenge facing President Donald Trump in achieving his ambitious economic growth targets. Source