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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 +1.24%   was off 0.2%, while Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.59%   was down about 0.1%. The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.35%   slipped 0.8% and the smaller-cap Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 -1.33%   dropped 1.4%. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.25%   was about flat, and benchmark indexes in Taiwan   and Singapore /zigman2/quotes/210597985/delayed SG:STI -0.28%   pulled back slightly. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +1.34%   gained 0.8%.

Among individual stocks, Rakuten /zigman2/quotes/201861450/delayed JP:4755 +3.95%  , Fast Retailing /zigman2/quotes/200663563/delayed JP:9983 +2.81%   and Nintendo   slumped in Tokyo trading, while oil producer Inpex /zigman2/quotes/206689846/delayed JP:1605 -0.99%   jumped. In Hong Kong, CNOOC /zigman2/quotes/203421416/delayed HK:883 -2.70%   and China Life Insurance /zigman2/quotes/202359856/delayed HK:2628 -1.78%   gained while real estate companies such as Country Garden /zigman2/quotes/201681083/delayed HK:2007 -1.05%   and China Overseas Land & Investment /zigman2/quotes/205731176/delayed HK:688 -2.27%   declined. Hyundai Motor /zigman2/quotes/206684590/delayed KR:005380 -0.71%  rose in South Korea, while Foxconn /zigman2/quotes/204111604/delayed TW:2354 -0.18%   slipped in Taiwan. Energy companies such as Beach Energy /zigman2/quotes/200513631/delayed AU:BPT -5.29%   and Woodside Petroleum /zigman2/quotes/203437212/delayed AU:WPL -1.32%   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 -2.76%   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 +1.48%   was up 0.1% at 2,907.97 while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +2.21%   fell 0.2% to 26,511.05. The Nasdaq composite /zigman2/quotes/210598365/realtime COMP +0.77%   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 -0.0605%   weakened to 111.80 yen from 111.93 yen late Monday.

/zigman2/quotes/210597971/delayed
JP : Nikkei
21,684.15
+264.92 +1.24%
Volume: 0.00
May 28, 2020 12:49p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
22,931.08
-370.28 -1.59%
Volume: 987,104
May 28, 2020 11:54a
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,826.91
-9.89 -0.35%
Volume: 13.15B
May 28, 2020 11:54a
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/zigman2/quotes/210598015/delayed
CN : Shenhzen Stock Exchange
1,750.61
-23.61 -1.33%
Volume: 18.53B
May 28, 2020 11:30a
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,026.18
-5.02 -0.25%
Volume: 748,793
May 28, 2020 12:49p
loading...
/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
2,512.51
-6.97 -0.28%
Volume: 0.00
May 28, 2020 11:54a
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,852.20
+77.20 +1.34%
Volume: 713,201
May 28, 2020 1:49p
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/zigman2/quotes/201861450/delayed
JP : Japan: Tokyo
¥ 1,026.00
+39.00 +3.95%
Volume: 12.80M
May 28, 2020 12:49p
P/E Ratio
N/A
Dividend Yield
0.44%
Market Cap
¥1314.21 billion
Rev. per Employee
¥74.20M
loading...
/zigman2/quotes/200663563/delayed
JP : Japan: Tokyo
¥ 58,600.00
+1,600 +2.81%
Volume: 906,300
May 28, 2020 12:49p
P/E Ratio
40.21
Dividend Yield
0.82%
Market Cap
¥5796.25 billion
Rev. per Employee
¥40.83M
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 763.10
-7.60 -0.99%
Volume: 5.11M
May 28, 2020 12:49p
P/E Ratio
9.61
Dividend Yield
3.15%
Market Cap
¥1093.84 billion
Rev. per Employee
¥291.81M
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/zigman2/quotes/203421416/delayed
HK : Hong Kong
HK$ 8.66
-0.24 -2.70%
Volume: 31.23M
May 28, 2020 11:54a
P/E Ratio
5.58
Dividend Yield
9.01%
Market Cap
HK$394.68 billion
Rev. per Employee
HK$13.96M
loading...
/zigman2/quotes/202359856/delayed
HK : Hong Kong
HK$ 14.34
-0.26 -1.78%
Volume: 16.80M
May 28, 2020 11:54a
P/E Ratio
6.10
Dividend Yield
5.52%
Market Cap
HK$408.14 billion
Rev. per Employee
HK$7.60M
loading...
/zigman2/quotes/201681083/delayed
HK : Hong Kong
HK$ 9.40
-0.10 -1.05%
Volume: 8.12M
May 28, 2020 11:54a
P/E Ratio
4.64
Dividend Yield
6.58%
Market Cap
HK$207.17 billion
Rev. per Employee
HK$3.60M
loading...
/zigman2/quotes/205731176/delayed
HK : Hong Kong
HK$ 23.70
-0.55 -2.27%
Volume: 6.88M
May 28, 2020 11:54a
P/E Ratio
N/A
Dividend Yield
4.30%
Market Cap
HK$267.33 billion
Rev. per Employee
HK$30.79M
loading...
/zigman2/quotes/206684590/delayed
KR : S. Korea: KRX
97,400.00
-700.00 -0.71%
Volume: 1.03M
May 28, 2020 12:49p
P/E Ratio
9.78
Dividend Yield
4.11%
Market Cap
₩25453.30 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204111604/delayed
TW : Taiwan
NT$ 54.20
-0.10 -0.18%
Volume: 1.15M
May 28, 2020 11:49a
P/E Ratio
11.26
Dividend Yield
4.61%
Market Cap
NT$76.38 billion
Rev. per Employee
NT$888.52M
loading...
/zigman2/quotes/200513631/delayed
AU : Australia: Sydney
$ 1.61
-0.09 -5.29%
Volume: 19.12M
May 28, 2020 1:46p
P/E Ratio
6.42
Dividend Yield
1.24%
Market Cap
$3.79 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203437212/delayed
AU : Australia: Sydney
$ 23.24
-0.31 -1.32%
Volume: 1.84M
May 28, 2020 1:49p
P/E Ratio
44.96
Dividend Yield
5.87%
Market Cap
$22.13 billion
Rev. per Employee
$1.92M
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/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 33.07
-0.94 -2.76%
Volume: 24.55M
May 27, 2020 4:00p
P/E Ratio
20.51
Dividend Yield
N/A
Market Cap
$26.69 billion
Rev. per Employee
$776,112
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,036.13
+44.36 +1.48%
Volume: 3.66B
May 27, 2020 5:16p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
25,548.27
+553.16 +2.21%
Volume: 420.36M
May 27, 2020 5:16p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
9,412.36
+72.14 +0.77%
Volume: 4.07M
May 27, 2020 5:16p
loading...
/zigman2/quotes/210561418/realtime/sampled
US : Tullett Prebon
0.0093
0.0000 -0.0605%
Volume: 0.0000
May 28, 2020 12:09a
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