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April 22, 2019, 11:45 p.m. EDT

Asian markets slip as oil prices surge

Nikkei, Hang Seng retreat modestly, while energy companies’ stock gains

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By Marketwatch and Associated Press


Reuters
The logo of China National Offshore Oil Corp (CNOOC) at its headquarters in Beijing.

Asian markets were largely down in early trading Tuesday as oil prices surged to nearly six-month highs after the U.S. said it would soon impose sanctions on all buyers of Iranian oil.

Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK +0.03%   was off 0.2%, while Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.74%   was down about 0.1%. The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.21%   slipped 0.8% and the smaller-cap Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 +0.0056%   dropped 1.4%. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.76%   was about flat, and benchmark indexes in Taiwan   and Singapore /zigman2/quotes/210597985/delayed SG:STI +0.41%   pulled back slightly. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.38%   gained 0.8%.

Among individual stocks, Rakuten /zigman2/quotes/201861450/delayed JP:4755 -1.84%  , Fast Retailing /zigman2/quotes/200663563/delayed JP:9983 +0.55%   and Nintendo /zigman2/quotes/208063194/delayed JP:7974 -1.33%   slumped in Tokyo trading, while oil producer Inpex /zigman2/quotes/206689846/delayed JP:1605 +0.35%   jumped. In Hong Kong, CNOOC /zigman2/quotes/203421416/delayed HK:883 0.00%   and China Life Insurance /zigman2/quotes/202359856/delayed HK:2628 -0.67%   gained while real estate companies such as Country Garden /zigman2/quotes/201681083/delayed HK:2007 -0.97%   and China Overseas Land & Investment /zigman2/quotes/205731176/delayed HK:688 -1.14%   declined. Hyundai Motor /zigman2/quotes/206684590/delayed KR:005380 +7.67%  rose in South Korea, while Foxconn /zigman2/quotes/204111604/delayed TW:2354 -1.15%   slipped in Taiwan. Energy companies such as Beach Energy /zigman2/quotes/200513631/delayed AU:BPT +1.92%   and Woodside Petroleum /zigman2/quotes/203437212/delayed AU:WPL +1.92%   advanced in Australia.

There was no strong impetus for buying in Asia. Reports from a recent high-level meeting in China, which was chaired by President Xi Jinping, showed willingness to fine-tune monetary policy but raised questions about future government stimulus. Traders were waiting for a slew of U.S. earnings reports from big companies such as Twitter /zigman2/quotes/203180645/composite TWTR +1.20%   starting Tuesday.

Over on Wall Street, the spike in crude oil prices boosted energy stocks on an otherwise listless Monday.

The broad S&P 500 /zigman2/quotes/210599714/realtime SPX +0.18%   was up 0.1% at 2,907.97 while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.20%   fell 0.2% to 26,511.05. The Nasdaq composite /zigman2/quotes/210598365/realtime COMP -0.05%   picked up 0.2% to 8,015.27.

On Monday, the Trump administration said it would no longer exempt any countries from U.S. sanctions if they continue to buy Iranian oil. The administration had granted eight waivers when it reimposed sanctions on Iran in November. These expire May 2.

Asian countries, namely China, India, Japan and South Korea are major importers of Iranian oil. The move will choke off more than $50 billion of annual Iranian income, which the U.S. says funds destabilizing activity in the Middle East and beyond.

“The prompt contracts quickly repriced higher on panic fears that markets could face an immediate supply crunch, adding more pressure to the already tenuous global supply squeeze,” Stephen Innes of SPI Asset Management said in a commentary.

Industry experts said the sanctions could potentially remove up to 1.2 million barrels of oil per day from international markets. But that number will likely be lower, depending on how countries respond and just how much oil Iran continues to export.

Oil prices rose for the third straight day on the news. Benchmark U.S. crude   added 34 cents to $65.89 per barrel in electronic trading on the New York Mercantile Exchange. The contract surged $1.48 to $65.55 per barrel on Monday. Brent crude  , used to price international oils, gained 29 cents to $74.33 per barrel in London. It jumped $2.07 to $74.04 per barrel in the previous session.

The dollar /zigman2/quotes/210561418/realtime/sampled JPYUSD +0.2920%   weakened to 111.80 yen from 111.93 yen late Monday.

/zigman2/quotes/210597971/delayed
JP : Nikkei
26,809.37
+8.39 +0.03%
Volume: 0.00
Dec. 3, 2020 3:15p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,728.50
+195.92 +0.74%
Volume: 2.83M
Dec. 3, 2020 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,442.14
-7.24 -0.21%
Volume: 29.85B
Dec. 3, 2020 3:01p
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/zigman2/quotes/210598015/delayed
CN : Shenhzen Stock Exchange
2,290.33
+0.13 +0.0056%
Volume: 37.37B
Dec. 3, 2020 3:00p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,696.22
+20.32 +0.76%
Volume: 817,065
Dec. 3, 2020 4:30p
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
2,822.34
+11.39 +0.41%
Volume: 0.00
Dec. 3, 2020 5:20p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,615.30
+25.10 +0.38%
Volume: 699,399
Dec. 3, 2020 5:32p
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/zigman2/quotes/201861450/delayed
JP : Japan: Tokyo
¥ 1,122.00
-21.00 -1.84%
Volume: 6.68M
Dec. 3, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
0.40%
Market Cap
¥1538.24 billion
Rev. per Employee
¥63.03M
loading...
/zigman2/quotes/200663563/delayed
JP : Japan: Tokyo
¥ 87,670.00
+480.00 +0.55%
Volume: 523,400
Dec. 3, 2020 3:00p
P/E Ratio
99.22
Dividend Yield
0.55%
Market Cap
¥8939.92 billion
Rev. per Employee
¥1.26B
loading...
/zigman2/quotes/208063194/delayed
JP : Japan: Tokyo
¥ 56,250.00
-760.00 -1.33%
Volume: 1.02M
Dec. 3, 2020 3:00p
P/E Ratio
16.35
Dividend Yield
2.24%
Market Cap
¥6834.11 billion
Rev. per Employee
¥211.05M
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 575.00
+2.00 +0.35%
Volume: 5.60M
Dec. 3, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
4.17%
Market Cap
¥846.92 billion
Rev. per Employee
¥427.76M
loading...
/zigman2/quotes/203421416/delayed
HK : Hong Kong
HK$ 7.70
0.00 0.00%
Volume: 264.83M
Dec. 3, 2020 4:08p
P/E Ratio
7.52
Dividend Yield
8.44%
Market Cap
HK$346.02 billion
Rev. per Employee
HK$13.96M
loading...
/zigman2/quotes/202359856/delayed
HK : Hong Kong
HK$ 17.90
-0.12 -0.67%
Volume: 42.53M
Dec. 3, 2020 4:08p
P/E Ratio
8.92
Dividend Yield
4.47%
Market Cap
HK$1192.92 billion
Rev. per Employee
HK$7.60M
loading...
/zigman2/quotes/201681083/delayed
HK : Hong Kong
HK$ 10.20
-0.10 -0.97%
Volume: 20.79M
Dec. 3, 2020 4:08p
P/E Ratio
5.36
Dividend Yield
5.94%
Market Cap
HK$222.64 billion
Rev. per Employee
HK$3.60M
loading...
/zigman2/quotes/205731176/delayed
HK : Hong Kong
HK$ 19.08
-0.22 -1.14%
Volume: 23.89M
Dec. 3, 2020 4:08p
P/E Ratio
N/A
Dividend Yield
5.35%
Market Cap
HK$208.80 billion
Rev. per Employee
HK$30.79M
loading...
/zigman2/quotes/206684590/delayed
KR : S. Korea: KRX
196,500
+14,000 +7.67%
Volume: 6.05M
Dec. 3, 2020 4:30p
P/E Ratio
44.45
Dividend Yield
1.53%
Market Cap
₩41948.51 billion
Rev. per Employee
₩1.51B
loading...
/zigman2/quotes/204111604/delayed
TW : Taiwan
NT$ 51.60
-0.60 -1.15%
Volume: 4.55M
Dec. 3, 2020 1:30p
P/E Ratio
13.46
Dividend Yield
4.84%
Market Cap
NT$74.12 billion
Rev. per Employee
NT$573.58M
loading...
/zigman2/quotes/200513631/delayed
AU : Australia: Sydney
$ 1.86
+0.04 +1.92%
Volume: 9.05M
Dec. 3, 2020 4:10p
P/E Ratio
8.46
Dividend Yield
1.08%
Market Cap
$4.04 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203437212/delayed
AU : Australia: Sydney
$ 22.85
+0.43 +1.92%
Volume: 3.37M
Dec. 3, 2020 4:10p
P/E Ratio
N/A
Dividend Yield
4.80%
Market Cap
$21.32 billion
Rev. per Employee
$1.83M
loading...
/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 47.23
+0.56 +1.20%
Volume: 10.28M
Dec. 2, 2020 7:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$37.12 billion
Rev. per Employee
$705,986
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,669.01
+6.56 +0.18%
Volume: 2.37B
Dec. 2, 2020 5:07p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
29,883.79
+59.87 +0.20%
Volume: 389.33M
Dec. 2, 2020 5:07p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
12,349.37
-5.74 -0.05%
Volume: 4.83M
Dec. 2, 2020 5:16p
loading...
/zigman2/quotes/210561418/realtime/sampled
US : Tullett Prebon
0.0096
+0.0000 +0.2920%
Volume: 0.0000
Dec. 3, 2020 8:14a
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