Asian energy shares slide after OPEC output decision; Nikkei rises after economic reports
Crude oil and Asian energy shares tumbled Friday as OPEC's decision to keep production steady rippled across the globe. Japanese stocks rose after a slew of economic data releases but other regional indexes were mixed.
KEEPING SCORE: Japan's benchmark Nikkei 225 index rose 1.1 percent to 17,437.69 while South Korea's Kospi slipped 0.2 percent to 1,978.85. Hong Kong's Hang Seng edged 0.1 percent lower to 23,978.58 while in mainland China the Shanghai Composite Index gained 0.7 percent to 2,649.57. Australia's S&P/ASX 200 tumbled 1.4 percent to 4,323.10. Benchmarks in Taiwan, Singapore and the Philippines rose while in Thailand, Indonesia and New Zealand they fell.
ENERGY: The oil cartel decided to maintain production at 30 million barrels a day despite global oversupply, as the Saudis and their Gulf allies hope to pressure rival producers in the U.S. That sent oil prices to four-year lows. Benchmark U.S. crude oil tumbled 6.5 percent, or $4.82, to $68.86 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price oil sold on international markets, slipped 9 cents to $72.49 after losing about $5 in the previous session.
MOVERS: Oil-related stocks were the big losers following the slide in crude prices. Chinese state owned oil giant CNOOC, the country's biggest crude producer, plunged 5.3 percent while Petrochina slid 3.3 percent and Sinopec fell 3 percent. Shares of Anglo-Australian miner BHP Billiton, which has crude oil interests, slipped 3.1 percent in Sydney.
JAPAN DATA: A raft of data releases gave mixed signs about the state of Asia's second biggest economy but the Nikkei surged nonetheless, a sign that investors thought the situation wasn't getting any worse and may even be stabilizing after Prime Minister Shinzo Abe renewed stimulus efforts. Inflation edged lower while industrial output edged up from the month before and unemployment eased slightly.
WALL STREET: U.S. markets were closed on Thursday for the Thanksgiving holiday.
CURRENCIES: The euro slipped to $1.2447 from $1.2453 in late trading Thursday. The dollar strengthened to 118.29 yen from 118.12 yen.