Nikkei: 10,579.10 (–85.60) Hang Seng: 22,906.90 (–83.91) Shanghai Comp: 2,862.63 (+7.12)ASIAN STOCKS fell yesterday, extending the regional benchmark's biggest retreat in a month, led by a sell-off in airlines as crude oil trades near a two-year high amid continued unrest in the Middle East.
“Investors are becoming more concerned about inflation in emerging markets and higher corporate costs because of rising oil prices,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities.
Qantas dropped 2 per cent to A$2.41 amid concern surging energy prices will crimp earnings for the region’s carriers.
Cathay Pacific, Hong Kong’s largest airline, fell 4.2 per cent to HK$17.32 and Korean Air Lines slid 1.8 per cent to 61,000 won in Seoul.
Hyundai Engineering and Construction, which generates about 38 per cent of sales from the Middle East, dropped 2.9 per cent to 70,200 won. The company has the “most exposure” to Libya among Korean builders.
Samsung Engineering has the biggest exposure to the Middle East-North Africa region at 79 per cent of its third-quarter backlog, declined 1.4 per cent to 157,500 won. – (Bloomberg)
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