(RTTNews) - Asian shares swung between gains and losses before ending mostly lower on Monday, as high oil prices threatened a fragile global economic recovery. Sentiment was also dampened by the lack of a confidence-boosting agreement at the G20 summit to support eurozone efforts to bolster bailout capacity.
The G20 top and developing countries said the eurozone will have to put in place a bigger financial firewall to combat the region's debt crisis before other countries contribute to any bailout.
Brent crude prices snapped five days of gains and were last hovering below $125 a barrel. Copper was down 0.7 percent after IMF Managing Director Christine Lagarde said the world economy is "still not of the danger zone" amid fragile financial systems, high debt levels and rising energy prices.
Japanese shares snapped a three-day winning streak as caution over soaring energy prices prompted investors to book some profits after recent gains. The Nikkei average slipped 0.4 percent, with the yen's continued weakness and expectations for the European Central Bank's funding limiting further downside. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, closed 0.1 percent higher, extending gains for the fourth consecutive session.
Among export-related shares, Sony, Honda Motor and Canon closed up 1-2 percent, while Fanuc fell 1.5 percent and Tokyo Electron lost 1.4 percent. Parco soared 9.3 percent after J Front Retailing agreed to buy a 33 percent stake in the shopping- center operator. Tokyo Dome rallied 3.7 percent after raising its annual earnings forecast. Kansai Electric Power fell 2.7 percent. The utility said after market hours that it would likely incur 253 billion yen in group net loss for the business year through March.
Australian shares fell, with the benchmark S&P/ASX 200 and the broader All Ordinaries index falling 0.9 percent and 0.8 percent, respectively, after Prime Minister Julila Gillard convincingly won the federal Labor leadership ballot over Kevin Rudd by 71 to 31 votes, making it the biggest win in a Labor leadership ballot in 30 years. Investors also fretted about higher oil prices and a strong Australian dollar.
Among the major miners, BHP Billiton lost 2 percent and Rio Tinto dropped one percent, but smaller rival Fortescue edged up 0.4 percent. The big four banks fell between 0.1 percent and 0.5 percent, oil & gas producer Woodside shed 1.9 percent and retailer Woolworths dropped 0.6 percent.
Caltex slipped 0.6 percent after the nation's biggest oil refiner reported an annual net loss of $714 million. Billabong International soared 4.8 percent after the surf wear retailer rejected a takeover offer from U.S. private equity firm TPG Capital but said it would continue talks with the suitor.
(RTTNews) - South Korea's Kospi average dropped 1.4 percent, dragged down by exporters on concerns a weaker yen and rising oil prices may have a major impact on the South Korean economy and hurt corporate earnings. Automakers bore the brunt of the selling, with Hyundai Motor, the nation's largest automaker, and its affiliate Kia Motors falling around 3 percent each.
Hynix paced the declines in the technology sector, falling 3.1 percent, while LG Electronics lost 2.1 percent. Soaring oil prices weighed on refiners, dragging SK Innovation and S-Oil down 3-5 percent. LG Chem, South Korea's biggest chemicals maker, slumped 4.1 percent. Shares of Hi-mart fell by its daily 15 percent limit on reports that senior executives of the electronics retailer were being investigated by prosecutors for possible embezzlement charges.
New Zealand shares fell, dragging the benchmark NZX-50 index down half a percent to a month-low, as investors digested mixed financial results released during the past couple of weeks. Casino and hotel operator Sky City tumbled 3.7 percent, carpet maker Cavalier, which reported a 58 percent fall in its first-half earnings last week, dropped 2.3 percent, and logistics firm Mainfreight ended down 1.8 percent. Hellaby Holdings rose 3.5 percent after the investment company reported a 42 percent rise in its first-half earnings.
Auckland International Airport fell 1.2 percent ahead of its interim results due on Wednesday, gold miner OceanaGold lost 1.6 percent and whiteware manufacturer Fisher & Paykel Appliances shed 2.4 percent. Among those that gained, outdoor clothing and equipment retailer Kathmandu added 1.6 percent, stock exchange operator NZX rose 1.8 percent and Australian food ingredient maker Goodman Fielder rallied 4.7 percent.
Elsewhere across Asia, Hog Kong's Hang Seng index slipped 0.9 percent, India's Sensex was down 2.4 percent, Singapore's Straits Times shed a percent and Indonesia's Jakarta Composite index was down 0.9 percent, while key benchmark indexes in China and Malaysia posted modest gains.
On Wall Street, the major averages lingered near the unchanged line on Friday before eventually ending the session narrowly mixed, as traders seemed reluctant to make any significant moves amid doubts whether the global economic situation supports further upside for the markets.
With the Iran-Israel standoff pushing crude oil prices to a 10-month high, traders largely shrugged off some relatively upbeat economic data on consumer confidence and new home sales.
