By Chao Deng And Daniel Inman
Stocks in Australia were under pressure from a volatile oil
market Wednesday, while China shares finished mixed as investors
weighed hopes for further monetary easing versus worries over
Greece's debt situation.
Australia's S&P/ASX 200 closed 0.5% lower at 5769.1, after
oil prices tumbled overnight on worries that swelling global oil
inventories would keep prices subdued over the next few months.
U.S. oil prices rose 0.7% to $50.40 a barrel in Asia trade, after
sliding 5.4% on Tuesday.
Late Tuesday, the American Petroleum Institute reported a
smaller-than-expected 1.6 million barrel build in crude stocks in
the U.S. tied to a drop in imports for the week ended Feb. 6,
according to Citi.
In Australia, mining company BHP Billiton, also a large oil
producer, lost 1.3% to A$30.97. Oil Search fell 2.6% to A$8.01.
Woodside Petroleum slid 3.0% to A$34.16 and Santos was down 3.3% at
A$7.71. The U.S. Energy Department will release its definitive
stockpile data later Wednesday.
Elsewhere, the Hang Seng was down 0.9% at 24315.02, with gains
capped by the continuing debacle between Greece and its
international creditors. While investors say they think Greece's
problems are contained, the standoff is pushing the country closer
to default and leaving the eurozone.
But the Shanghai Composite Index added 0.5% to 3157.70, on
expectations that the growing risk of a deflationary spiral in
China would encourage the country's central bank to ease monetary
policy further.
Haitong International expects three or four cuts to the reserve
requirement ratio this year and one or two interest-rate cuts. The
People's Bank of China late Tuesday released its fourth-quarter
monetary-policy report, saying that it would continue with prudent
monetary policy and create what it described as "neutral and
appropriate monetary conditions."
China Railway Group was in focus, with the stock up 2.2%, after
the company said it would raise up to 12 billion yuan via a private
placement.
Fast-food chain Domino's Pizza Enterprises stood out as
Wednesday's best-performing stock, skyrocketing 21% to A$33.00,
after the company posted a 67% jump in first-half profit and
upgraded its full-year earnings guidance.
Markets in Japan are closed for a national holiday. Malaysian
stocks were down 0.7% at 1798.95 and the Philippines was off 0.5%
at 7687.42.
--Vera Sprothen contributed to this article.
Write to Chao Deng at Chao.Deng@wsj.com
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