Asian Stocks Fall as Oil Surges Past $100

Asian stocks fell on Wednesday as oil prices breached USD 100 a barrel mark giving rise to speculation that it will increase costs and hurt earnings.

The decline was led by automakers and electricity producers.

Crude oil for March delivery rose 4.7% to settle at a record USD 100.01 a barrel on the New York Mercantile Exchange (NYMEX) yesterday.

Japanese benchmark index Nikkei fell 106.27 points, or 0.77%, to trade at 13,651.64.

Hong Kong`s index Hang Seng slipped marginally by 12.34 points, or 0.05%, to trade at 24,110.83.

China`s Shanghai Composite was down 34.08 points, or 0.73%, at 4,630.21.

Taiwan`s index Taiex declined 28.47 points, or 0.35%, to trade at 7,995.94.

South Korea`s KOSPI fell 10.33 points, or 0.60%, to trade at 1,710.19.

Singapore`s Straits Times fell 14.68 points, or 0.47%, to trade at 3,083.38 (8.25 a.m., IST)

Toyota Motor Corp. and Hyundai Motor Co. dragged automakers lower on concern higher gasoline bills will cut demand. Tokyo Electric Power Co. and Kansai Electric Power Co. paced a drop by power generators on speculation fuel costs will rise. Woodside Petroleum Ltd. and Inpex Holdings Inc. led gains by oil companies.

``The fear is that, even with slower global growth, raw materials are going to continue climbing,'' said Seiji Iwama, who helps oversee $47 billion at Daiwa SB Investments Ltd. in Tokyo.

Crude oil prices rose on Tuesday (February 19), as investors bet that crude prices will keep climbing despite evidence of plentiful supplies and falling demand.

Light sweet crude for March delivery rose USD 4.51 to settle at a record USD 100.01 a barrel on the New York Mercantile Exchange (NYMEX).

March gasoline jumped 10.93 cents to settle at a record USD 2.6031 a gallon. The retail gas prices jumped 1.8 cents overnight, to a national average price of USD 3.032 a gallon.

March heating oil rose 11.45 cents to settle at USD 2.7614 a gallon on the NYMEX.

In London, Brent crude for April delivery rose USD 3.65 to settle at USD 98.56 a barrel on the ICE Futures exchange.

March natural gas jumped 31.7 cents to settle at USD 8.977 per 1,000 cubic feet.