Energy firms and shippers post rise
Asian energy and shipping-line stocks rose yesterday on speculation Chinese demand for commodities will rise as the nation recovers from its worst snowstorms in 50 years. Commonwealth Bank of Australia led a decline in banks after profit growth slowed.
China Shenhua Energy Co paced gains among fuel suppliers. Mitsui O.S.K. Lines Ltd jumped to its highest this year after a measure of commodities-shipping prices rose for a fourth day. Commonwealth, Australia’s biggest mortgage lender, dropped the most in eight years after funding costs and provisions for bad debts increased, Bloomberg News said.
“The volumes of raw-material traffic are going to remain reasonably strong,” said Angus Gluskie, who helps manage the equivalent of US$500 million at White Funds Management in Sydney. “We’re not seeing a generalized reduction in the overall risk for banks.”
The MSCI Asia Pacific Index was little changed at 139.45 at 7:09pm in Tokyo, paring earlier gains of 1.3 percent. Japan’s Nikkei 225 Stock Average added 0.4 percent to 13,068.30, its first consecutive advance since January 25.
Australia’s S&P/ASX 200 Index lost 1.2 percent. South Korea retreated 0.7 percent.
Woori Finance Holdings Co fell in Seoul after posting a 54-percent decline in profit, while Tokyo Electron Ltd, the world’s second-largest maker of semiconductor equipment, gained as bigger rival Applied Materials Inc forecast orders that topped some analyst estimates.
Citigroup Inc and Bank of America Corp climbed in the United States on Tuesday after Warren Buffett, the world’s No. 1 investor, said he’s willing to take on US$800 billion in insurers’ municipal debt obligations, raising speculation credit losses will be stemmed. The Standard & Poor’s 500 Index rose 0.7 percent.
China Shenhua, the nation’s largest coal producer, advanced 1.1 percent to HK$40.50 (US$5.19) in Hong Kong. PetroChina Co, the country’s largest energy explorer, jumped 2.4 percent to HK$11.20. PT Bumi Resources, Indonesia’s biggest coal exporter, gained 5.1 percent to 7,200 rupiah (78 US cents) in Jakarta.
China has deployed more than 15,000 soldiers to restore power in two provinces after the worst blizzards since 1954. Power shortages affected at least half of the 31 provinces in China, which burns coal to generate about 78 percent of its electricity.
“Output and transport disruption” in China “further support coal prices,” Credit Suisse analysts including Trina Chen said in a report dated Tuesday. “Weaker hydropower, aggressive coal mine closures and transport difficulty, due to snowstorms, will continue to add more temporary strength this winter.”
Mitsui O.S.K., Japan’s second-largest shipping line, jumped 4.9 percent to 1,403 yen (US$13.12), adding to Tuesday’s 4.1 percent rally.
Tags: Energy