Decline in crude fuels rally
Decline in crude fuels rally
TOKYO Asian stocks rose Monday as lower prices for crude oil eased concern that high fuel costs would curb economic growth. LG Electronics and Honda Motor led a rebound by exporters.
“Falling oil prices boost investor confidence,” said Mike Shiao, a fund manager at Invesco Taiwan in Taipei.
The Morgan Stanley Capital International Asia-Pacific Index added 0.62 points to reach 120.47 in Tokyo, its highest point since April 2000. It has risen almost 19 percent this year.
The Nikkei 225-stock average rose 218.41 points to 15,391.48. It has jumped 34 percent in 2005, and it is set for its best year since 1999.
In Seoul, the Kospi rose 18.36 points to 1,339.40, another record. The Kospi has surged almost 50 percent this year, making it the best-performing benchmark index in East Asia. In Taipei, the Taiex climbed 80.73 points to 6,431.42, its highest since August. The Hang Seng index in Hong Kong added 153.08 points to 15,182.89.
The biggest intraday gain in the region was in Jakarta, where the composite index jumped 18.90 points to 1,162.33. Indexes around the region advanced, except in Pakistan and the Philippines.
Lower oil prices eased concern about the prospect for consumer spending in the United States, Asia’s biggest export destination.
In early trading on the New York Mercantile Exchange, crude oil for February delivery, the most active contract, fell as much as 33 cents a barrel, to $58.72.
“The decline in oil prices is a desirable scenario for exporter stocks,” said Hideyuki Ookoshi, a fund manager at Chiba-gin Asset Management.
LG Electronics, which generated 79 percent of its revenue from overseas in 2004, surged 5,600 won to 87,000 won. Honda, which is the most dependent of Japan’s top three carmakers on U.S. sales, climbed ¥100 to ¥6,670.
Venture, the biggest publicly traded electronics maker in Singapore, added 0.10 Singapore dollars to 14.20 dollars.
BHP Billiton led gains by commodity stocks after copper prices climbed on Friday in London. BHP gained 0.27 Australian dollars to 21.87 dollars.
TOKYO Asian stocks rose Monday as lower prices for crude oil eased concern that high fuel costs would curb economic growth. LG Electronics and Honda Motor led a rebound by exporters.
“Falling oil prices boost investor confidence,” said Mike Shiao, a fund manager at Invesco Taiwan in Taipei.
The Morgan Stanley Capital International Asia-Pacific Index added 0.62 points to reach 120.47 in Tokyo, its highest point since April 2000. It has risen almost 19 percent this year.
The Nikkei 225-stock average rose 218.41 points to 15,391.48. It has jumped 34 percent in 2005, and it is set for its best year since 1999.
More: iht.com