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Oil price drop, Wall Street hit Asian shares
AFP - Monday, January 18
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Oil price drop, Wall Street hit Asian shares
HONG KONG (AFP) - – A sharp fall in oil prices and Wall Street's worst performance so far in 2010 hit Asian stocks Monday, while a new index was launched in China covering the Hong Kong, Taiwan and mainland markets.
Crude was sent tumbling after the International Energy Agency (IEA) said last week that demand this year would be "sluggish" in the developed world, with emerging markets accounting for any increases.
Sentiment in the black gold had been hit earlier in the week when the US, the world's biggest energy consumer, said reserves had increased, despite a severe cold snap across much of the country.
In Singapore, New York's main contract, light sweet crude for February delivery fell 70 cents to 77.30 dollars a barrel.
Brent North Sea crude for February delivery was 71 cents lower 76.40 dollars a barrel.
New York crude was at a 15-month high of 83.95 dollars last Monday on the back of strong Chinese data but has subsequently tumbled.
"Oil is under pressure primarily from economic considerations," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
"Some of the economic data out of the US were not really robust and so these data raised doubts about the health of the US consumer and the strength of the US economy."
Tokyo was off 1.83 percent, Hong Kong lost 1.26 percent and Sydney was 0.27 percent lower, while Singapore was flat.
Dealers in the region were also absorbing a 0.94 percent fall in New York, the biggest drop this year, where better-than-expected earnings data from chipmaker Intel and bank giant JP Morgan failed to lift spirits.
Chinese and Hong Kong stocks were also dented by growing concerns Beijing will further tighten monetary policy to keep a lid on the nation's soaring economic growth.
Analysts said the focus this week will likely turn to upcoming Chinese economic data Thursday "in order to judge whether more tightening measures are required to keep the China economy from overheating."
However, China launched the CSI Cross-Straits 500 Index Monday in a bid to boost financial cooperation in the Greater China region.
The China Securities Index Company said on its website that the market, which covers 500 firms listed in the mainland, Hong Kong and Taiwan, was down 0.98 percent.
The dollar was flat against the yen in Tokyo morning trade, while the euro slid to 1.4345 dollars in Tokyo from 1.4385 in New York late Friday. The European unit dropped to 130.28 yen from 130.55.
And in Hong Kong gold opened slightly lower at 1,130.30-1,131.30 US dollars an ounce, from Friday's close of 1,135.00-1,136.00 dollars.
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