Oil Extends Rout on Demand Concern While Yen Climbs After Vote

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Crude oil slid, extending declines from a five-year low amid concern over waning global demand for the commodity. Australian stocks dropped and Japanese index futures slipped while the yen gained after a national election.

West Texas Intermediate oil sank 1.8 percent to $56.79 a barrel by 8:56 a.m. in Tokyo, dropping for a fourth straight day as Brent crude fell 1.3 percent. The S&P/ASX 200 Index lost 1.3 percent in Sydney. Futures on the Nikkei 225 Stock Average were bid 1.3 percent below their Dec. 12 close in the Osaka pre-market, while the yen added 0.5 percent after Prime Minister Shinzo Abe secured victory in yesterdays vote. Standard & Poors 500 Index futures were little changed after a slump Dec. 12 sealed the U.S. gauges first weekly drop since mid October.

Oil prices have tumbled by more than $40 a barrel this year as U.S. shale output contributes to a global glut amid forecasts for a drop in demand. WTI extending losses below $58 ignited a selloff in U.S. equities Dec. 12, with the Dow Jones Industrial Average erasing 100 points in the last hour of trading. In Japan, Abes ruling bloc won more than two-thirds of the seats in the lower house, while the Tankan surveys of corporate sentiment were mixed for the fourth quarter.

Source : Bloomberg

Yen Climbs After Election; Aussie Near Low on Iron Revenue Fall

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The yen rose amid speculation traders were locking in profits after Prime Minister Shinzo Abes victory in elections he called to win a fresh mandate for policies that have driven Japans currency to a seven-year low.

Australias dollar was near the weakest since June 2010 after Treasurer Joe Hockey said yesterday the budget deficit is deepening because of the biggest slump in the nations terms of trade since records began more than 50 years ago. Norways krone was near an 11-year low after crude sank below $58 a barrel for the first time since 2009.

The yen rose 0.4 percent to 118.29 per dollar as of 8 a.m. in Tokyo. The dollar was little changed at $1.2471 per euro, after sliding 1.4 percent in the five days to Dec. 12. The 18-nation currency was down 0.2 percent at 147.71 yen.

The Aussie traded at 82.52 U.S. cents, after touching a four-year low of 82.15 reached on Dec. 11.

Bloombergs gauge of the dollar declined 0.6 percent last week in New York, the first weekly drop since Oct. 17. The measure, which closed Dec. 5 at a five-year high of 1,122.34, has gained this year amid speculation the Fed is moving toward raising interest rates as the worlds biggest economy improves.

Source : Bloomberg

Japan Stocks Follow U.S. Shares Lower as Yen Gains After Abe Win

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An election victory for Prime Minister Shinzo Abe didnt stop Japanese stocks from slumping today, as a slide in U.S. equities on concern about oils freefall and a stronger yen weighed on sentiment.

The Topix index declined 1.2 percent to 1,387.76 as of 9:00 a.m. in Tokyo after sinking 3.2 percent last week. The measure is poised for its lowest close since Nov. 17. The Nikkei 225 Stock Average slid 1.4 percent to 17,121.67. Abes ruling coalition won more than two-thirds of the 475 seats in the lower house, about the same as before yesterdays vote. The yen jumped 0.5 percent to 118.11 per dollar amid speculation traders were locking in profit after the results. The Standard & Poors 500 Index tumbled 1.6 percent on Dec. 12.

While Abes victory was overshadowed by the lowest turnout since World War II, he doesnt need to call another election until 2018, potentially making him the longest-serving premier in four decades. The Topix has almost doubled since the vote was called in 2012 that brought his government to power, even as data showed the nation slipped back into recession this year after a sales-tax increase dragged down consumption.

Futures on the Standard & Poors 500 Index were little changed. The selloff in the underlying equity measure on Dec. 12 picked up speed in the final hour as the Dow average plunged more than 100 points and the S&P 500 ended about 2 points above its average price for the last 50 days, a level monitored by technical analysts.

Source : Bloomberg

Asian Stocks Fall After U.S. Shares Slide Amid Growth Concern

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Asian stocks fell, after U.S. markets posted the biggest weekly drop in three years, amid concern that a tumbling oil price signals weakness in the outlook for global economic growth.

The MSCI Asia Pacific Index dropped 0.6 percent to 136.60 as of 9:01 a.m. in Tokyo, headed for a 1 1/2-month low, before markets opened in Hong Kong and China. The Standard & Poors 500 Index tumbled 1.6 percent Dec. 12, extending losses in the final hour, as material shares led the retreat. The Dow Jones Industrial Average sank 3.8 percent on the week, its biggest weekly drop since November 2011.

About $2 trillion was erased from the value of equities worldwide last week as oil prices tumbled, raising concern over the strength of the global economy. West Texas Intermediate crude continued its slump today, sliding 1.9 percent to $56.69 a barrel after losing 12 percent last week.

China is likely to see economic expansion next year decelerate to 7.1 percent as a slowdown in real estate investment continues, according to Ma Jun, chief economist of the Peoples Bank of Chinas research center. Futures on Hong Kongs Hang Seng Index fell 0.5 percent in their most recent trading session, while contracts on the Hang Seng China Enterprises Index of mainland companies listed in the city fell 0.9 percent.

Source : Bloomberg