Asian stocks fell yesterday as oil at a 5 1/2 year low weighed on energy companies and a stronger yen and declines in U.S. equities dragged down Japanese shares as the market opened after a holiday.
The MSCI Asia Pacific Index slipped 0.4 percent to 137.32 as of 9:01 a.m. in Tokyo, before markets opened in Hong Kong and China. The yen rose 0.1 percent to 118.26 per dollar, after climbing 0.1 percent yesterday. The Standard & Poor’s 500 Index sank 0.8 percent yesterday after sliding 0.8 percent on Dec. 9.
The decline in crude gathered pace as Goldman Sachs Group Inc. and Societe Generale SA cut price forecasts for the commodity, amid projections a global glut will continue. China trade data today will probably show exports grew 6 percent last month, while imports dropped 6.2 percent, according to the most economists.
“Another plunge in oil prices is likely to further pressure shares,” said Michael McCarthy, Sydney-based chief market strategist at CMC Markets. We expect “support for safe-haven assets. Analysts are expecting a lift in China exports and a fall in imports, a growth-friendly result that may shift market focus.”
Recent Chinese data has been weak, with a report last week showing producer prices in December falling more than forecast. An official manufacturing gauge slid to the lowest level in 18 months last month, while industrial profits slumped by the most in two years in November. Copper traded at a five-year low on prospects consumption of the metal will slow in Asia’s largest economy.