Asian Shares Rattled By Fall in US Stocks Data

By Chao Deng 

        Stocks in Japan, Korea and Australia fell Thursday, after an overnight downturn in oil prices rattled U.S. markets overnight.
        The Nikkei Stock Average lost 1.7% to 17119.15, also as the U.S. dollar weakened against the Japanese yen. The currency was at Yen117.63, from Yen117.82 late Wednesday in New York.
        "Large overseas hedge funds and other hedged investors are making their year-end position adjustments, booking profits after going long on the dollar and Nikkei futures and shorting the yen," said Eiji Kinouchi, chief technical strategist at Daiwa Securities.
        But broad losses came after U.S. stocks tumbled Wednesday. Benchmark U.S. crude fell 4.5% overnight to $60.94 a barrel, its lowest level since July 2009, sparking a sharp decline in already battered energy shares. Oil prices saw their biggest one-day drop since Nov. 28, the session that followed the Organization of the Petroleum Exporting Countries' decision to maintain its oil-output target. Prices were last at $61.29 a barrel.
        Australia's S&P/ASX 200 edged lower by 0.6% to 5232.80 and Korea's Kospi lost 0.8% to 17121.19.
        Australia's third-largest oil company, Santos Ltd. said it would slash capital spending by 26% next year and consider asset sales, as it tries to fortify its balance sheet against tumbling oil prices. Among Australia's large-cap oil companies, Santos has been the hardest hit by crude oil's plunge. The stock fell 4.5% early Thursday.
        Write to Chao Deng at Chao.Deng@wsj.com
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        (END) Dow Jones Newswires

        December 10, 2014 20:19 ET (01:19 GMT)

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