Most Asian markets fall as record oil prices renew worries of rising energy, food costs, AS

Thu, May 8 06:35 PM

BANGKOK, Thailand (AP) _ Most Asian markets fell Thursday as soaring global oil prices renewed fears over inflation driven by rising energy and food costs. Investors were jittery as oil prices jumped to a record near US$124 a barrel in electronic trading on the New York Mercantile Exchange.

Traders said sentiment was also sluggish following heavy overnight losses on Wall Street. The benchmark Nikkei 225 index dropped 1.

1 percent to 13,943.3.

Hong Kong's Hang Seng fell 0.6 percent to 25,449.

8. Chinese stocks, though, rose on late-session bargain-hunting.

The benchmark Shanghai Composite Index climbed 2.2 percent to 3,656.

8, after dropping 4.1 percent on Wednesday.

Among losers in Japan, Mitsubishi UFJ Financial Group dropped 3.7 percent and Mizuho Financial Group fell 5.

2 percent. Shares in Japan's top automaker Toyota Motor Corp.

declined 1.8 percent.

Just as trading wound up, the company said its profit for the fiscal fourth quarter dropped 28 percent from the previous year on the strong yen and lagging North American sales. Hong Kong analysts said they expect more volatility for the local market in the near term.

They said economic performance and market movements in the U.S.

and China will likely be the key factors driving investor sentiment in the near term. The Dow Jones industrial average fell 1.

6 percent to 12,814.35 points on Wednesday.

But the rise in China's Shanghai index helped narrow the Hang Seng's losses. Among blue-chip banks listed in the territory, Bank of Communications and ICBC fell 1.

5 percent. China Construction Bank fell 0.

3 percent. Hong Kong shares of Chinese refiners and airlines again lost ground on worries about the companies' costs increasing with the rising international oil prices.

PetroChina fell 2.4 percent and Sinopec fell 3.

3 percent. China Eastern shares fell 2.

6 percent, China Southern fell 2.0 percent and Air China fell 2.

2 percent. However, in China, investors optimistic about the country's economic outlook opted to seek bargains among blue chips after they fell sharply in the previous session, analysts said.

China Life Insurance rose 2.1 percent after falling 8.

0 percent on Wednesday. Baoshan Iron & Steel gained 2.

9 percent after losing 6.2 percent a day earlier.

China Shenhua Energy climbed 6.3 percent after falling 3.

3 percent in the previous session. And while unlike on their Hong Kong listings, refiners and airlines were able to eke out gains on the mainland exchanges, they underperformed the market on concerns that the rising oil prices are adding to China's already serious inflationary pressures.

"Investors are split on the outlook for inflation: some expect the consumer price index rise to start easing, while others believe that the CPI will remain at high levels," said Wang Junqing, an analyst at Guosen Securities. Elsewhere in Asia, major stock benchmarks fell in India, Indonesia, Malaysia, Singapore, South Korea and Taiwan.

Benchmarks rose in Australia, New Zealand, the Philippines and Thailand. In Tokyo currencies, the dollar was quoted at 104.

11 at 6:50 p.m.

(0950 GMT), down from 104.70 yen late Wednesday in New York.

The euro stood at US$1.5338, down from US$1.

5394 late Wednesday in New York.

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