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Asian stocks rise for first time in five days
Asian stocks rose for the first time in five days, led by Japanese shipping and electronics makers, on speculation falling crude prices will ease fuel costs and free up discretionary income for consumers.
- Bloomberg
- Published: 09:27 December 25, 2008
Tokyo: Asian stocks rose for the first time in five days, led by Japanese shipping and electronics makers, on speculation falling crude prices will ease fuel costs and free up discretionary income for consumers.
Mitsui O.S.K. Lines Ltd., Japan's biggest operator of iron-ore ships, jumped 4.6 per cent, its first gain in seven sessions, as tumbling crude sent fuel prices down a second day.
Panasonic Corp., the world's largest maker of consumer electronics, advanced 3.7 per cent after US consumer spending fell less than anticipated. Aisin Seiki Co., a parts affiliate of Toyota Motor Corp., sank 1.5 per cent after cutting its profit target to zero.
“Cheaper oil will allow Americans to spend more on discretionary items,'' said Yoshinori Nagano, a senior strategist at Tokyo-based Daiwa Asset Management Co., which manages about $96 billion in Tokyo. “Higher fuel costs have eaten into company profit, and with crude falling by this degree, we'll probably see the opposite effect next year.''
The MSCI Asia Pacific Index added 0.25, or 0.3 per cent, to 86.75 as of 1:29 pm in Tokyo, as most markets in the region were closed for the Christmas holiday. Japan's Nikkei 225 Stock Average climbed 21.18, or 0.3 percent, to 8,538.28.
China's CSI 300 Index, which tracks yuan-denominated A shares traded on the nation's two exchanges, fell 2.85, or 0.2 per cent, to 1,884.22, reversing an earlier gain. Thailand's SET Index rose 0.4 per cent.
The MSCI Asia Pacific slumped 45 per cent in 2008, the worst annual performance in its two-decade history, as the most severe financial crisis since the Great Depression dragged economies worldwide into recessions.
US consumer spending declined 0.6 per cent last month, the Commerce Department said, as cheaper gasoline left Americans with more cash. Economists had expected a 0.7 per cent drop. Prices for energy and raw materials have plummeted as the outlook for the global economy dimmed, providing some cost relief to manufacturers facing slowing sales.
Crude oil for February delivery sank 9.3 per cent to close at $35.35 a barrel on Wednesday. Oil touched $32.40 on Dec. 19, the lowest since February 2004, and has lost almost two-thirds of its value this year.
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