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Asian markets fall on lower oil prices | |
(about 5 hours later) | |
Asian stocks fell, dragged down by energy-related shares as oil prices hit their lowest levels since 2009. | |
The price of West Texas crude dropped 5.8% to $37.65 a barrel, while Brent Crude fell 5.3% to $40.73. | |
Oil prices have been hit after Opec - the oil producers' cartel - failed to cut production last week. | |
Japan's Nikkei 225 closed down 1% at 19,492.6, despite figures showing that Japan's economy avoided a technical recession in the third quarter. | |
Shares in troubled Japanese tech giant Toshiba ended 3% lower following the news that the firm could face a record fine of 7.37bn yen ($60m; £39m) for its multi-billion dollar accounting scandal. | |
Fifty individual Toshiba shareholders are also seeking $2.45m in damages from the firm after its stock plunged following the accounting scandal. | Fifty individual Toshiba shareholders are also seeking $2.45m in damages from the firm after its stock plunged following the accounting scandal. |
Oil stocks hurting | Oil stocks hurting |
Fresh data from China showed the country's exports fell 3.7% in yuan-denominated terms in November from a year earlier, while imports fell 5.6%. | |
The latest figures leave the country with an overall trade surplus of 343bn yuan ($53.4bn) and did little for investor sentiment. | |
The Shanghai Composite index closed down 1.9% at 3,470.07, while Hong Kong's Hang Seng index dropped 1.3% to 21,905.13. | |
Shares in China National Offshore Oil Corporation (CNOOC Group) - a major oil firm in China - finished 3.6% lower. | |
In Australia, Sydney's S&P/ASX 200 closed down 0.91% at 5,108.60 points, with energy stocks weighing on the index. | |
Shares in BHP Billiton, which has substantial interests in conventional and unconventional oil and gas, closed down 5% in Sydney trade. | |
Meanwhile, Sydney-listed shares of oil and gas provider Santos closed down 12.6%. | |
Analysts warned investors to steer clear of shares related to the oil and gas sector. | |
"With conditions expected to remain volatile, investors would be wise to avoid the sector altogether and focus on other opportunities instead," said the Motley Fool's Ryan Newman. | |
Samsung | |
On a brighter note, shares of South Korea's Samsung Engineering - part of the huge family-run Samsung conglomerate - jumped by nearly 24% in early trade after the group's heir, Lee Jae-yong, said he would back the construction arm's 1.2 trillion won ($1.02bn) rights issue. | |
Samsung Engineering posted a record quarterly loss in the three months to September, prompting plans for the rights issue. The firm's shares finished the trading day up 14%. | |
However, the good news did little to help the benchmark Kospi index, which finished the day down 0.75% at 1,949.04. |
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