Asia stock markets exchanged firmly lower Friday, later than early optimism for progress on the US “fiscal cliff” got a dent from Republican lawmakers withdrawing a vote on a back-up tax-cut plan.
Losses were remarkable in the area’s biggest markets, with Japan’s Nikkei Stock Average lower 0.9%, after remaining 1.3% higher in early action,whereas Hong Kong’s Hang Seng Index lost 0.8%, and South Korea’s Kospi shed 1%.[article_detail_ad_1]
Taiwan’s Taiex fell 1.2%, Australia’s S&P/ASX 200 index slipped 0.3%, Singapore’s Straits Times Index moved down 0.3%, and the Shanghai Composite Index gave up 0.5%.
Energy Companies were weighing in Hong Kong, with China Petroleum & Chemical Corp(HKG:0386)(NYSE:SNP)dropped 1.1%, and Cnooc Limited(HKG:0883)(NYSE:CEO)similarlydeclining 1.1%, as benchmark US oil futures declined more than a dollar in electronic trading to hover just exceeding $89.00 per barrel after the fiscal-cliff vote news.
CNOOC’s assurance of transparency, pledged to triumph approval from Canada for its $15.1 billion acquisition of Nexen Inc, looks like anoptimistic step on the face of it but is improbable to represent a sea change in Chinese business practices.
Certainly, the details of commitment are not obvious. The state-controlled energy company has assured the Canadian government ayearly compliance report on all its commitments that are part of its buyout of Nexen Inc, China’s largest ever takeover.
These comprise listing shares on Toronto stock exchange, which comes with definite disclosure requests. But when capital is ruler, cash-rich Chinese state-owned enterprises have the balance of power in any purchase talks, leaving doubts regarding the real potency of transparency pledges.
China Petroleum & Chemical Corporation shares were trading within the range of $8.64-$8.81 while its opening price was $8.66. Its market capitalization is $757.07 million. Its stock price 52 weeks low was $6.38 and 52 weeks high price was $9.67.