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HONG KONG, July 18: Asian stock markets were mostly lower on Tuesday, beset by concerns over about what record oil prices will do to the outlook for inflation and interest rates, especially if the conflict in the Middle East escalates further, dealers said.
They said that with no let up seen in the crisis, the prospect is for higher oil prices still, which will hit growth directly in key markets such as the United States by taking more money out of consumers' pockets.
On the one hand, they ensure that Chinese demand for commodities, goods and services will continue to be a major growth driver in the region and beyond, sustaining earnings growth.
TOKYO: Japanese share prices tumbled 2.75 per cent, hitting a five-week low as investors fled the market in fear that the Middle East crisis will send oil prices even higher, dealers said.
The losses were exacerbated as Tokyo was closed Monday and had to catch up with the major sell-off in Asian markets triggered by Wall Street's sharp fall at the end of last week.
HONG KONG: Hong Kong share prices closed 0.13 per cent weaker on concerns over the conflict in the Middle East and caution ahead of key US inflation data and congressional testimony by Federal Reserve chairman Ben Bernanke this week, dealers said.
SYDNEY: Australian share prices closed 0.66 per cent lower after metal prices fell overnight and investors continued nervous as rising Middle East violence kept oil near record levels, dealers said.
SINGAPORE: Singapore shares closed up 0.59 per cent in a technical rebound after recent sustained losses on concerns over the Middle East conflict but the latest Israeli attacks on Lebanon took them off their highs, dealers said.
KUALA LUMPUR: Malaysian share prices closed 0.66 per cent higher on a technical rebound, supported by strong manufacturing sales data for May, dealers said.
JAKARTA: Indonesian share prices closed slightly higher in a technical rebound after recent losses but investors were not ready to push the gains in the face of most weaker regional markets, dealers said.
WELLINGTON: New Zealand share prices closed 0.89 per cent lower in their fourth straight decline amid uncertainty surrounding international markets and inflation fears at home, dealers said.
MUMBAI: Indian share prices closed 0.65 per cent lower, extending losses to a fourth day on selling by both foreign and local funds, dealers said.—AFP
