Commodity trading: Plunge in US hits Asian stocks

Commodity trading reversals in US cause Japan and Korean markets to fall. Asian mining, energy companies drop with negative cast to commodity trading.


  • close
    A foreign currency dealer from the Korea Exchange Bank walks past a monitor displaying the Korea Composite Stock Price Index ( KOSPI) and the exchange rate between the South Korean won and US dollar in Seoul April 21, 2011. The Kospi dropped 1.8 percent May 6, 2011, after sharp declines in commodity trading in the US.
    View Caption

A plunge in commodities and an unexpectedly negative U.S. job growth report rattled investor sentiment in Asia on Friday, sending major benchmarks sharply lower.

Japan's Nikkei 225 index slid 1.8 percent to 9,822.61; South Korea's Kospi index dropped 1.8 percent to 2,140.59; and Hong Kong's Hang Seng index shed 0.5 percent to 23,138.43.

Benchmark crude for June delivery rose 93 cents to $100.73 a barrel in electronic trading on the New York Mercantile Exchange. The day before, oil plunged nearly 9 percent to settle below $100 per barrel as mounting concerns about the U.S. economy triggered the biggest one-day percentage decline in more than two years. In commodity trading apart from oil, markets also fell broadly Thursday.

Recommended: Top 5 bull markets since 1929

Energy companies fell, mimicking the price of oil. China National Offshore Oil Corp., or CNOOC Ltd., lost 1.7 percent. PetroChina Co. Ltd. was 1.3 percent lower.

Mining shares also took a hit. Zijin Mining Group, China's biggest gold miner, slumped 3.1 percent. Australia's BHP Billiton, the world's largest mining company, was 1.6 percent down.

IN PICTURES: Gold’s journey

The drop in oil prices was a boost to airline companies, however. Taiwan's EVA Airways Corp. soared 6.3 percent, China's Eastern Airlines Corp. Ltd. jumped 4.6 percent, and South Korea's Asiana Airlines rose 2.9 percent.

Thursday's pullback in commodities indicated that some speculators were locking in their gains and that other investors were protecting profits because of concerns that Friday's U.S. jobs reports may be worse than originally thought.

On Wall Street, stock indexes fell after the Labor Department said that first-time claims for unemployment benefits rose to 474,000 last week, the highest level in eight months. Forecasters didn't see it coming. Economists had expected claims would drop to 410,000.

The Dow Jones industrial average lost 1.1 percent to 12,584.17. The S&P 500 dropped 0.9 percent to 1,335.10. The Nasdaq composite fell 0.5 percent to 2,814.72.

Applications for unemployment benefits have increased in three of the previous four weeks. The jump in claims, along with other signs the U.S. economic recovery is losing strength, have raised concerns about what the government's monthly jobs report for April will reveal when it is released Friday.

Prior to Wednesday, rising earnings had been driving stocks up in recent weeks. But even strong results reported Thursday by several large companies did not outweigh concerns about the economic recovery.

General Motors Co. was among the companies reporting higher profits Thursday. GM said its earnings more than tripled on stronger sales in the U.S. and China.

In currencies, the dollar slipped slightly against the euro to $1.4558 from $1.4530 late Thursday in New York. The dollar strengthened to 80.48 yen from 80.19 yen.

Share this story:

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.




eZ debug

Clear cache:

Quick settings:

Timing: Jul 09 2014 13:38:21
Script start
Timing: Jul 09 2014 13:38:21
Module start 'content'
Timing: Jul 09 2014 13:38:21
Module end 'content'
Timing: Jul 09 2014 13:38:21
Before parse_includes
Strict: PHP: E_STRICT Jul 09 2014 13:38:21
Non-static method MugoViewExtras::get_view_extras() should not be called statically, assuming $this from incompatible context in /var/www/ on line 37
Warning: eZTemplate:def @ extension/csm_base/design/csm_design/override/templates/extra/archive.tpl:21[1] Jul 09 2014 13:38:21
Variable 'view_extra_node' is already defined.
Timing: Jul 09 2014 13:38:21
After parse_includes
Timing: Jul 09 2014 13:38:21

Timing points:

CheckpointElapsedRel. ElapsedMemoryRel. Memory
Script start 0.0000 sec0.0167 sec 1,288.1016 KB1,162.2500 KB
Module start 'content' 0.0167 sec0.0048 sec 2,450.3516 KB733.6875 KB
Module end 'content' 0.0215 sec0.0416 sec 3,184.0391 KB3,039.7813 KB
Before parse_includes 0.0631 sec0.0428 sec 6,223.8203 KB389.6563 KB
After parse_includes 0.1059 sec0.0010 sec 6,613.4766 KB-173.4922 KB
End 0.1069 sec  6,439.9844 KB 
Total runtime:0.1157 sec
Peak memory usage:6,887.3750 KB

Time accumulators:

 Accumulator Elapsed Percent Count Average
Load cache0.0066 sec5.5697%310.0002 sec
Mysql Total
Mysqli_queries0.0375 sec31.6289%590.0006 sec
Looping result0.0016 sec1.3749%560.0000 sec
Template Total0.0553 sec 46.7% 6 0.0092 sec
Template load0.0042 sec3.5502%60.0007 sec
Template processing0.0534 sec45.0644%60.0089 sec
Cache load0.0024 sec1.9992%60.0004 sec
state_id_array0.0021 sec1.8024%50.0004 sec
state_identifier_array0.0020 sec1.7248%50.0004 sec
String conversion0.0000 sec0.0183%30.0000 sec
dbfile0.0005 sec0.3806%180.0000 sec
View Extra building0.0269 sec22.6782%20.0134 sec
Total script time:0.1185 sec

CSS/JS files loaded with "ezjscPacker" during request:


Templates used to render the page:

UsageRequested templateTemplateTemplate loadedEditOverride
1pagelayout.tpl<No override>extension/csm_base/design/csm_design/templates/pagelayout.tplEdit templateOverride template
1modules/mugo_view_extras/extra_cached.tpl<No override>extension/mugo_view_extras/design/standard/templates/modules/mugo_view_extras/extra_cached.tplEdit templateOverride template
1setup/debug_toolbar.tpl<No override>design/standard/templates/setup/debug_toolbar.tplEdit templateOverride template
 Number of times templates used: 3
 Number of unique templates used: 3
 Time used to render template usage: 0.0002 secs