By Chao Deng
Stocks in Australia climbed Tuesday as crude oil prices
rebounded, while Japan edged down after Moody's Investors Service
downgraded its credit.
The S&P/ASX 200 was up 0.7% at 5242.0, supported by a
recovery in the energy sector. Benchmark U.S. oil prices on the New
York Mercantile Exchange surged 4.3% to $69 a barrel overnight, its
largest percentage gain in more than two years in a rally that
snapped four sessions of losses.
Australia's benchmark index has been one of the worst performing
stock markets in Asia Pacific in the past month, with a more than
5% loss. Only Vietnam's significantly smaller stock market has
performed worse, declining 5.5% in the same period.
But on Tuesday, Australia rebounded from a 3.6% loss in the last
two trading sessions, when investors worried that a sustained drop
in oil prices would weigh on the bottom line of the country's oil
producers. An index of the energy sector was up 2.7%.
Sectors such as airlines that benefit from lower oil prices also
rallied. Oil prices are still down 26% in a five-month selloff and
investors expect long-term weakness in oil prices.
Qantas Airways Ltd. was up 1.6%, toll road operator Transurban
Group Ltd. was up 1.4% and logistics provider Toll Holdings Ltd.
was up 1.0%.
In Japan, stocks were lower following the downgrade of the
country's credit rating by Moody's. The Nikkei Stock Average was
last off 0.2%. Moody's made its announcement after the market
closed yesterday.
Write to Chao Deng at Chao.Deng@wsj.com
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