By Chao Deng
Stocks in Australia rose while Australia's dollar plunged to a 5
1/2 -year low Tuesday after its central bank cut interest
rates.
The Australian dollar fell more than 1% after the Reserve Bank
of Australia lowered its benchmark interest rate to a record low of
2.25%, joining central banks around the world in easing policy,
aimed at countering deflationary pressure from falling oil
prices.
The Australian dollar traded at $0.7682 against the U.S. dollar,
compared with its open at $0.7802. Australia's S&P/ ASX 200
stock index was up 1.4% to 5701.90, the highest since May 2008.
A rally in oil also helped the resource-heavy benchmark. Crude
oil futures in New York rose 0.7% in Asia trade to $49.93 a barrel,
lifting utilities and energy shares higher.
Origin Energy Ltd. jumped 10%, while Australia's two largest
miners, BHP Billiton Ltd. and Rio Tinto PLC, were up 5% and 2%
respectively.
Oil futures in New York have risen nearly 11% in the past week,
helping Australian stocks outperform the region. The S&P/ASX
200 has marked its longest winning streak since 2013, having been
up nine of the past 10 trading days.
Worries about the health of the U.S. economy pressured Tokyo and
Hong Kong shares, however. The Hang Seng Index was down 0.3% and
the Nikkei Stock Average was down 0.9%, as investors looked to a
fall in a U.S. manufacturing gauge of in January that came in below
expectations on Monday.
The figure kept a cap on the U.S. dollar, which traded at
Yen117.12 against the yen, from Monday's high of Yen117.88.
A bottom in oil prices would also pressure the dollar. Since
last year, oil-price falls have tended to lead to gains in the
dollar against the yen and vice versa, according to J.P.
Morgan.
In Hong Kong, shares of Sun Hung Kai & Co. Ltd. fell 4.9%
after the investment company said Monday that Chinese brokerage
Everbright Securities Co. offered to buy its securities business
for $529 million. Sun Hung Kai plans to use the proceeds to expand
in consumer finance, structured finance and principal investments,
as well as for a dividend to shareholders. The stock closed at
HK$7.00 before it halted trading Monday.
Write to Chao Deng at Chao.Deng@wsj.com
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