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Asia's shares hit by commodity price slides | Asia's shares hit by commodity price slides |
(about 1 hour later) | |
Asian stock markets saw sharp falls as a drop in the price of commodities hit mining companies and energy-related stocks. | |
Commodity prices have been falling all week, with the price of copper hitting a six-year low, and oil near six-and-a-half-year lows. | |
Hong Kong's Hang Seng closed down 2.2% at 22,396.14 - leading Asia's losses. | |
Shares in mining giant Glencore fell 6.7%, after having seen its London-listed shares drop 7.6% on Thursday. | |
Like all mining companies, Glencore has been affected by the fall in commodity prices, but it is also seeking to reduce huge debt levels. | |
In mainland China, the Shanghai Composite fell 1.4% to 3,580.84. | |
Miners slump | |
Australia's benchmark S&P/ASX 200 index closed down 1.45% at 5,051.30. | Australia's benchmark S&P/ASX 200 index closed down 1.45% at 5,051.30. |
Shares in BHP Billiton, Australia's biggest miner, were down as much as 3% in early trade, but recovered slightly to close down 1.84%. | Shares in BHP Billiton, Australia's biggest miner, were down as much as 3% in early trade, but recovered slightly to close down 1.84%. |
"The slide in commodities has seen BHP at its lowest price in a decade and has seen the Australian energy sector cross over the 30% decline level for the first time this year," IG Market's Evan Lucas told the BBC. | "The slide in commodities has seen BHP at its lowest price in a decade and has seen the Australian energy sector cross over the 30% decline level for the first time this year," IG Market's Evan Lucas told the BBC. |
He said the materials sector - which includes mining and refining of metals as well as chemical producers - was now making up 13.5% of the Australian stock exchange, down from 27% in 2011. | He said the materials sector - which includes mining and refining of metals as well as chemical producers - was now making up 13.5% of the Australian stock exchange, down from 27% in 2011. |
"The only commodities to see green in overnight trade were coffee, sugar and beef," Mr Lucas added. | "The only commodities to see green in overnight trade were coffee, sugar and beef," Mr Lucas added. |
Adding to BHP's problems, the Brazilian government fined BHP Billiton and its partner Vale for a dam burst at their jointly-owned mine. | Adding to BHP's problems, the Brazilian government fined BHP Billiton and its partner Vale for a dam burst at their jointly-owned mine. |
Japan's benchmark Nikkei 225 index closed down 0.5% at 19,596.91, while South Korea's Kospi index ended lower by 1% at 1,973.29. | |