Asian stocks slide as oil falters

HONG KONG - Asian stocks were mostly lower on Wednesday, tracking declines on Wall Street as crude oil extended losses after Saudi Arabia ruled out freezing production, saying market forces should be allowed to work.

See Full Article

KEEPING SCORE: Japan's benchmark Nikkei 225 index lost 0.9 per cent to 15,915.79 as investors seeking haven in the yen pushed it higher, hurting shares of the country's big exporters. South Korea's Kospi edged 0.1 per cent lower to 1,912.53 and Hong Kong's Hang Seng fell 1.4 per cent to 19,146.54. The Shanghai Composite Index in mainland China rose 0.7 per cent to 2,920.98. Australia's S&P/ASX 200 slid 2.1 per cent to 4,875.00. Benchmarks in Taiwan, Singapore, Indonesia and the Philippines also lost ground.

CRUDE CONCERNS: Saudi Arabia's oil minister, Ali Al-Naimi, told a meeting of energy leaders in Houston on Monday that output cuts aimed at boosting slumping crude prices won't work. He said that the market should instead let some operators go out of business. Crude oil tumbled more than 4 per cent. The long term drop in oil prices, which are hovering around $30 a barrel after tumbling from more than $100 in mid-2014, has sliced into profits at energy companies. It's also now starting to hurt income at big U.S. banks as higher-cost producers struggle to repay loans taken out during the boom.

ANALYST INSIGHT: "The disappearance of risk appetite after last week's positive performance can be traced to bad news around oil once again," said Bernard Aw, market strategist at IG.

GLOBAL ECONOMY: Worries about the world economy are also weighing on investors' minds. Singapore and Hong Kong both reported Wednesday that growth slowed last year and their governments forecast further weakness for 2016 on softer global demand for their exports and services. Meanwhile, China's currency slipped as the central bank guided its exchange rate lower for the second day in a row.

ENERGY: Benchmark U.S. crude futures skidded 69 cents, or 2.2 per cent, to $31.18 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.52, or 4.6 per cent, to settle at $31.87 a barrel on Monday. Brent crude, which is used to price oils internationally, fell 43 cents, or 1.3 per cent, to $32.85 a barrel in London.

WALL STREET: The Dow Jones industrial average fell 1.1 per cent to 16,431.78 and the Standard & Poor's 500 index lost 1.3 per cent to 1,921.27. The Nasdaq composite fell 1.5 per cent to 4,503.58.

CURRENCIES: The dollar fell to 111.92 yen from 111.97 yen in the previous day's trading. The euro weakened to $1.1011 from $1.1018.



Advertisements

Latest Economic News

  • Consumer culture on the rise in North Korea

    Economic CTV News
    PYONGYANG, Korea, Democratic People's Republic Of - Like all North Korean adults, Song Un Pyol wears the faces of leader Kim Jong Un's father and grandfather pinned neatly to her left lapel, above her heart. Source
  • Asian stocks slide as Spain attack weighs down markets

    Economic CTV News
    HONG KONG - Asian stocks sank Friday as global investor sentiment was battered by big losses on Wall Street amid U.S. political turmoil and a deadly van attack in Spain. KEEPING SCORE: Japan's benchmark Nikkei 225 index lost 1 per cent to 19,505.23 and South Korea's Kospi shed 0.2 per cent to 2,356.58. Source
  • Starbucks chairman questions 'moral fiber' of U.S.

    Economic CTV News
    SEATTLE -- Starbucks chairman Howard Schultz says the events surrounding a white nationalist rally in Charlottesville, Virginia, last weekend have put the "moral fiber" of the country in question. Schultz said at an employee forum in Seattle on Tuesday that he has "profound concern about the lack of character, morality, humanity," displayed at the rally, according to a recap of the meeting posted on Starbucks' website. Source
  • Ex-J.C. Penney executive tapped for CFO gig at Hudson's Bay Company

    Economic CTV News
    TORONTO -- Hudson's Bay Company has tapped the former chief financial officer of another struggling retailer, J.C. Penney, to fill its vacancy. Edward Record will step into the executive role on Aug. 28, taking over the job from Paul Beesley, whose upcoming departure was announced in early July. Source
  • Apple CEO makes $2 million pledge to fight hate

    Economic CTV News
    SAN FRANCISCO -- Apple is donating $2 million to two human rights groups as part of CEO Tim Cook's pledge to help lead the fight against the hate that fueled the violence in Virginia during a white-nationalist rally last weekend. Source
  • Walmart took bigger bite out of Canadian grocery industry last quarter, earnings show

    Economic CBC News
    Walmart says its Canadian stores gained market share against rivals during its fiscal second quarter. "We further improved our price position against competitors, which contributed to market share gains in key traffic driving categories such as food and consumables," Walmart chief financial officer Brett Biggs said in remarks prepared for analysts during a conference call to discuss its most recent results Thursday. Source
  • Minnesota to review Enbridge Line 3 oil pipeline from Alberta

    Economic CTV News
    MINNEAPOLIS -- Minnesota regulators on Thursday released the final environmental review of Enbridge Energy's proposal to replace its aging Line 3 oil pipeline, which carries Canadian tar sands crude across northern Minnesota to Wisconsin. The state Commerce Department has updated and expanded the massive document since it released the draft for public comment in May. Source
  • Ontario court dismisses CUPE lawsuit over sale of Hydro One shares

    Economic CTV News
    TORONTO - An Ontario court has thrown out a lawsuit against the provincial government over the controversial partial sale of Hydro One. The lawsuit filed last December by the Canadian Union of Public Employees alleged the sale of shares in the utility was "motivated by improper and ulterior purposes," namely to reward benefactors of the Ontario Liberal Party. Source
  • L.L. Bean boosts production of iconic boot

    Economic CTV News
    LEWISTON, Maine -- L.L. Bean hopes to give the boot to backlogs of its most iconic product. The Maine-based retailer is expanding production to keep up with demand for its leather-and-rubber "duck boot" with a new manufacturing centre with another machine used to make the rubber soles. Source
  • Canadian manufacturing sales fall 1.8 per cent in June, breaking winning streak

    Economic CTV News
    OTTAWA -- Canadian manufacturing sales fell in June following three consecutive months of gains, with declines led by the petroleum and coal industry. Manufacturing sales slipped 1.8 per cent overall to $53.9 billion in June, Statistics Canada said Thursday in a monthly report. Source