BLBG: Oil Drops as Rising Chinese Stocks Erase Asian Losses
Oil fell, with U.S. prices slipping for a fourth day, after an industry report showed crude supplies rose for a ninth week. Chinese stocks rallied and the euro strengthened, while Indonesia’s currency declined.
West Texas Intermediate oil dropped 0.3 percent as of 2:15 p.m. in Tokyo. The Shanghai Composite Index (SHCOMP) advanced for the first time in five days while U.S. stock-index futures were little changed after the Nasdaq Composite Index (CCMP) closed above 4,000 for the first time in 13 years yesterday. The euro strengthened versus almost all major counterparts as the rupiah fell 1 percent after sliding to the weakest since March 2009.
Crude inventories in the U.S., the world’s biggest oil consumer, increased by 6.9 million barrels last week, the American Petroleum Institute said yesterday, ahead of a government report expected to show oil supplies in the nation increased. Japanese airlines flew through an air-defense zone claimed by China and disputed by Japan today after U.S. unarmed B-52 bombers entered the area. U.S. jobless claims probably increased from an almost two-month low as consumer confidence in the nation unexpectedly dropped.
“Data on balance still looks murky,” Matthew Sherwood, head of investment markets research in Sydney at Perpetual Ltd., which manages about $25 billion, said by e-mail. “Most importantly, there was a surprise decline in the Conference Board’s measure of consumer confidence.”
Chinese Gains
WTI oil dropped to $93.43 a barrel. The Energy Information Administration will probably say oil supplies rose 750,000 barrels last week, according to the median of 11 responses in a Bloomberg survey. Prices slipped Nov. 25 after Iran and world powers reached an interim agreement to restrict the country’s nuclear program in exchange for the easing of some sanctions.
The MSCI Asia Pacific Index was little changed. Chinese stocks gained 0.9 percent, with those in Hong Kong adding 0.7 percent as the city’s benchmark Hang Seng index headed for its highest close since April 2011.
Guangzhou Hi-Target Navigation Tech Co. (300177) jumped by the daily limit of 10 percent in Shanghai on speculation China’s air defense zone will lead to higher military spending. The area includes three islands in the East China Sea that are owned by Japan, a major U.S. ally, and have been at the center of a dispute between Asia’s two biggest economies.
Japan Airlines Co. flew through the air zone without reporting to China, spokesman Kazunori Kidosaki said today. Peach Aviation Ltd., a low-fare carrier affiliated with ANA Holdings Inc., also said it crossed the zone.
Internet Retailer
Australia’s S&P/ASX 200 Index fell 0.5 percent, while Japan’s Topix Index (TPX) slipped 0.2 percent, extending a retreat from a six-month high.
Rakuten Inc., the Japanese Internet retailer controlled by billionaire Hiroshi Mikitani, surged to a record in Tokyo trading after saying it will boost its dividend. The stock jumped as much as 14 percent.
The Conference Board’s confidence index fell to 70.4 from a revised 72.4 a month that was stronger than initially estimated, the New York-based private research group said yesterday. The median forecast in a Bloomberg survey of 78 economists called for a November reading of 72.6.
Initial claims for U.S. unemployment benefits probably rose to 330,000 in the week to Nov. 28, after falling to the lowest level in almost two months in the previous period, according to the median of 44 economists’ estimates compiled by Bloomberg.
Euro Gains
The dollar fell for a second day versus the euro. The euro touched a four-year high against the yen as lawmakers in Germany, Europe’s biggest economy, reached a coalition accord. The yen declined 0.3 percent against the dollar, unwinding some of yesterday’s first advance in four days.
Indonesia’s rupiah extended declines on concern the current-account and trade deficits aren’t narrowing fast enough. The currency yesterday slid after a dollar bond sale fell short of its target. Malaysia’s ringgit sank to its weakest in eight weeks while the baht was little changed. Thailand is projected to keep its benchmark interest rate at 2.5 percent today, according to a Bloomberg survey of economists.
Wheat rose 0.3 percent, rebounding from the first drop in three sessions, on signs of rising demand from importers including Japan and Egypt, the world’s biggest buyer. Gold traded at $1,245.80 an ounce, near a four-month low.
To contact the reporters on this story: Rachel Evans in Hong Kong at revans43@bloomberg.net; Adam Haigh in Sydney at ahaigh1@bloomberg.net
To contact the editor responsible for this story: Emma O’Brien at eobrien6@bloomberg.net
