Asian markets declined in the initial session of trade on Wednesday (May. 21), on concern that rising credit market losses will reduce banks` earning and declining growth in demand from China will affect raw-materials producers.
Mitsubishi UFJ Financial Group declined after forecasting profit will remain flat this year. BHP Billiton lost the most among mining stocks.
Japan`s index Nikkei 225 fell 279.21points, or 1.97%, to trade at 13,880.88.
Hong Kong`s index Hang Seng declined 243.74 points, or 0.97%, to trade at 24,925.72.
China`s Shanghai Composite lost 36.47 points, or 1.06%, to trade at 3,406.70.
Taiwan`s Taiex index lost 71.77 points, or 0.79%, to trade at 8,997.12.
South Korea`s KOSPI pared 22.72 points, or 1.21%, to trade at 1,850.43.
Singapore`s Straits Times declined 41.09 points or 1.28%, to trade at 3,158.79. (8.24 a.m. IST)
Indian ADRs decline as US markets retreat
US stocks tumbled on Tuesday (May 20) amid rising energy costs and inflation worries.
The Dow Jones fell 199.48 points, or 1.53%, to 12,828.68. The NASDAQ composite dropped 23.83 points, or 0.95%, to 2,492.26.
The yield on the benchmark 10-year Treasury note, which moves opposite its yield, fell to 3.78% from 3.83% late Monday.
Indian ADRs ended on a negative note on Tuesday, following their US counterparts.
|Indian ADRs||USD($)||% Gain/(Loss)|
|Sterlite Industries (India)||22.30||(0.58)|
|Mahanagar Telephone Nigam||5.01||(1.38)|
|Satyam Computer Services||25.97||(1.4)|
|Dr Reddy`S Laboratories||14.86||(2.24)|
|I C I C I Bank||43.05||(3.24)|
|Patni Computer Systems||12.89||(3.88)|
|H D F C Bank||104.19||(4.64)|
Oil jumps to record high at USD 129.07 a barrel
Oil prices surged on Tuesday (May 20) on growing concerns that increased production by Saudi Arabia won`t be enough to meet demand.
Light sweet crude for June delivery rose USD 2.02, to settle at record close of USD 129.07 a barrel on the New York Mercantile Exchange (NYMEX).
Gasoline futures added 6.78 cents to settle at USD 3.3044 a gallon. The retail gas prices stood at USD 3.80 a gallon.
Heating oil futures rose to settle at USD 3.775 a gallon at the NYMEX.
In London, Brent crude for July delivery jumped USD 2.78 to settle at USD 127.84 on the ICE Futures Exchange.
Natural gas futures surged 41.1 cents to settle at USD 11.365 per 1,000 cubic feet.