By Kosaku Narioka
TOKYO -- Most Asian stocks rose Monday, taking their cues from
greater stability in crude oil prices and the Russian ruble, along
with the U.S. Federal Reserve's indication last week it would take
a slow approach to raising interest rates.
Australia's S&P/ASX 200 rose 1.9% to 5,442.00 and Hong
Kong's Hang Seng Index was up 1.3% at 23,408.57 as concerns eased
over further instability in commodity and other global market
conditions. Japan's Nikkei Stock Average ended up 0.1% at
17,635.14, having hovered above and below the break-even mark
throughout the session on a day of thin trading.
U.S. and global oil benchmarks jumped to their largest
percentage gains in more than two years Friday. The Russian ruble
recovered some ground to 56.56 per dollar from the record low of
80.00 Tuesday last week.
BHP Billiton Ltd. (BHP) , , which has both energy and mining
interests, added 3.0%. "The rebound in oil and iron ore will be key
for the local market as investors look for some bargains in the
resource space," said Stan Shamu, a strategist at broker IG in
Australia.
PetroChina Co. Ltd. , China's biggest oil firm listed in Hong
Kong, rose 4.1% as oil prices rebounded.
While the Federal Reserve last week broached the prospect of
"beginning to normalize the stance of monetary policy," it also
said it would be "patient" before raising rates, in a move expected
to come around the middle of next year. The approach taken by Fed
officials helped lift stocks in the U.S. and elsewhere, pushing up
the S&P 500 (SPX) just shy of a fresh closing record
Friday.
"We won't see a rate increase at least until April. The rate
rise isn't imminent. We've got some time," said Mitsushige Akino,
chief fund manager at Ichiyoshi Investment Management in Tokyo.
Not everyone has gained from the upturn in crude prices.
Japanese airline stocks fell, after recent gains on the lower oil
prices, which translate into reduced fuel costs. Japan Airlines Co.
lost 1.7%.
Taiwan shares gained 1.1% on a rosy outlook for technology
companies in the coming quarter as many big names are expected to
roll out new products. Acer Inc. rose 2.9%.
Shanghai stocks advanced 0.6%, while India's Sensex was up
0.4%.
Among other individual stock movers in Japan, Idemitsu Kosan Co.
rose 2.5% to Yen2,075 following news of a potential buyout of Showa
Shell Sekiyu K.K. , which surged 28% to Yen1,302. Japan's
second-biggest oil refiner and distributor said Saturday it is in
talks to buy the No. 5 player in the industry as falling domestic
oil demand pinches the margins of wholesalers.
JX Holdings Inc. rose 6.4% after its unit JX Nippon Oil &
Energy signed a pact Friday with Vietnam National Petroleum Corp.
to negotiate a deal to buy a stake in the state-run firm and set up
a joint venture to develop an oil refinery in the nation.
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