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Nov. 28, 2014, 6:21 a.m. EST

Australian shares slump after OPEC decision

Asian benchmarks finish mixed.

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By Robb M. Stewart and Chao Deng


Shutterstock/Selfiy Enlarge Image
Australian markets declined early Friday, while other Asian markets traded mixed.

Stocks in Australia finished sharply lower Friday, after the world’s biggest oil-producing nations rejected calls to cut output, sending crude prices into a tailspin and weakening Asian energy stocks.

Australia’s S&P ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.32%  lost 87.9 points, or 1.6%, at 5313.0, as crude-oil futures fell.

Oil and gas exploration and production company Santos /zigman2/quotes/207349564/delayed AU:STO -0.38%  tumbled 13%, while larger Woodside Petroleum /zigman2/quotes/203437212/delayed AU:WPL -0.33%  lost 7.1%. Elsewhere in the sector, Oil Search /zigman2/quotes/204702973/delayed AU:OSH -0.35%  gave up 5.9% and Origin Energy /zigman2/quotes/207944120/delayed AU:ORG -1.31%  dropped 7%.

The 12-member Organization of the Petroleum Exporting Countries, which collectively pump around one-third of the world’s oil, agreed on Thursday to stick to a current target of pumping 30 million barrels a day, suggesting the cartel is bracing for lower prices, longer term. Oil prices have fallen more than 30% since the summer amid weak global demand and a glut of supply.

Ric Spooner, chief market analyst at CMC Markets in Sydney, said investors were pricing in the possibility of sustained weakness in oil prices and a scenario where supply capacity might persist for the next year or two. “It’s not unusual for markets to stay oversupplied for longer than expected. Consequently prices can fall further than many expect,” he said.

Falling crude prices also pressured Hong Kong. A gauge of Hong Kong-listed energy stocks fell 3.3%. Cnooc Ltd /zigman2/quotes/203421416/delayed HK:883 -0.84%  was the worst hit of China’s major oil companies with a 5.5% loss.

Asian benchmarks finished mixed, however.

Stocks in Shanghai /zigman2/quotes/210598127/delayed CN:SHCOMP +2.07%  outperformed, led by bank stocks. China Everbright Bank Co. Ltd. /zigman2/quotes/207472099/delayed CN:601818 +2.45% , Bank of Communications Co. Ltd. /zigman2/quotes/203442771/delayed HK:3328 0.00%   and China Citic Bank Corp. Ltd. /zigman2/quotes/205809997/delayed HK:998 +0.63%  each rose by their 10% upper daily limit, amid expectations that China would soon launch a long-anticipated deposit insurance system. The Wall Street Journal reported that senior officials at the country’s central bank discussed details on Thursday for implementing the plan, which would pave the way for more banks to freely compete for depositors.

The Shanghai Composite Index jumped 2.0% to 2,682.83. The market has gained 7.9% this week, after China rate cuts last Friday.

In Tokyo, investors bought up shares of companies which use fuel intensively, such as airlines and shippers. Japan Airlines rose 5.3%, Kawasaki Kisen /zigman2/quotes/201857679/delayed JP:9107 +1.05%  jumped 6.9%, and Fuji Heavy Industries /zigman2/quotes/203522406/delayed JP:7270 +0.28%  gained 3.8%.

The Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +0.18%  ended up 1.2% at 17,459.85.

/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,864.50
-18.70 -0.32%
Volume: 1.51M
Sept. 18, 2020 5:05p
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/zigman2/quotes/207349564/delayed
AU : Australia: Sydney
$ 5.22
-0.02 -0.38%
Volume: 11.79M
Sept. 18, 2020 4:10p
P/E Ratio
N/A
Dividend Yield
1.86%
Market Cap
$10.85 billion
Rev. per Employee
$2.29M
loading...
/zigman2/quotes/203437212/delayed
AU : Australia: Sydney
$ 18.28
-0.06 -0.33%
Volume: 6.75M
Sept. 18, 2020 4:10p
P/E Ratio
N/A
Dividend Yield
6.06%
Market Cap
$17.52 billion
Rev. per Employee
$1.92M
loading...
/zigman2/quotes/204702973/delayed
AU : Australia: Sydney
$ 2.82
-0.01 -0.35%
Volume: 10.48M
Sept. 18, 2020 4:10p
P/E Ratio
N/A
Dividend Yield
5.01%
Market Cap
$5.86 billion
Rev. per Employee
$1.46M
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/zigman2/quotes/207944120/delayed
AU : Australia: Sydney
$ 4.53
-0.06 -1.31%
Volume: 10.96M
Sept. 18, 2020 4:10p
P/E Ratio
97.63
Dividend Yield
6.94%
Market Cap
$7.96 billion
Rev. per Employee
$2.70M
loading...
/zigman2/quotes/203421416/delayed
HK : Hong Kong
HK$ 8.29
-0.07 -0.84%
Volume: 78.65M
Sept. 18, 2020 4:09p
P/E Ratio
8.09
Dividend Yield
7.84%
Market Cap
HK$370.13 billion
Rev. per Employee
HK$13.96M
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,338.09
+67.65 +2.07%
Volume: 25.63B
Sept. 18, 2020 3:01p
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/zigman2/quotes/207472099/delayed
CN : China: Shanghai
¥ 3.77
+0.09 +2.45%
Volume: 138.07M
Sept. 18, 2020 3:00p
P/E Ratio
6.06
Dividend Yield
5.68%
Market Cap
¥179.28 billion
Rev. per Employee
¥4.75M
loading...
/zigman2/quotes/203442771/delayed
HK : Hong Kong
HK$ 3.90
0.00 0.00%
Volume: 31.37M
Sept. 18, 2020 4:09p
P/E Ratio
3.68
Dividend Yield
8.85%
Market Cap
HK$347.18 billion
Rev. per Employee
HK$5.47M
loading...
/zigman2/quotes/205809997/delayed
HK : Hong Kong
HK$ 3.17
+0.02 +0.63%
Volume: 43.27M
Sept. 18, 2020 4:09p
P/E Ratio
3.49
Dividend Yield
8.24%
Market Cap
HK$249.44 billion
Rev. per Employee
HK$6.26M
loading...
/zigman2/quotes/201857679/delayed
JP : Japan: Tokyo
¥ 1,253.00
+13.00 +1.05%
Volume: 2.04M
Sept. 18, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
¥116.87 billion
Rev. per Employee
¥128.12M
loading...
/zigman2/quotes/203522406/delayed
JP : Japan: Tokyo
¥ 2,112.50
+6.00 +0.28%
Volume: 2.87M
Sept. 18, 2020 3:00p
P/E Ratio
20.65
Dividend Yield
2.65%
Market Cap
¥1619.90 billion
Rev. per Employee
¥95.93M
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/zigman2/quotes/210597971/delayed
JP : Nikkei
23,360.30
+40.93 +0.18%
Volume: 0.00
Sept. 18, 2020 3:15p
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