Asian Stocks Close Down, Except Australian Markets

May 9, 2008 8:42 a.m. EST

Tokyo, Japan (AHN) - Asian stocks closed lower for the third day on Friday as worries of a weakening subprime market and rising oil prices increased fears of increasing global food crisis.

Crude oil prices for June delivery reached another record level above $124 a barrel mark in New York over rising concerns about the potential decline in the U.S. stockpiles and rising cost of gasoline coupled with food production.

Oil climbed to $124.70 a barrel, before it retreated slightly by to $124.40 a barrel on Friday morning.

In currency trading, the U.S. dollar was 103.10 yen per dollar or down by 0.6 percent, while the Australian dollar dropped by 0.3 per cent to $0.9410 on Friday.

In Japan, the Nikkei 225 average closed down by 287.92 points or 2.06 percent at 13,655.34 points, while the Topix index dropped by 2.1 percent to 1,343.51 points.

Exporters such as Toyota Motor shed up to 3.3 percent amid sales slowed by the rising cost of gasoline and the stronger yen.

Shares of Honda Motor declined by 3.9 percent, followed by Suzuki Motor down by 3.8 percent.

Camera maker Olympus also plunged by 5.8 percent on Friday over a weak earnings projection led by a competetive market and rising costs of raw materials. Sumitomo Rubber Industries Ltd., Japan's second largest tiremaker, tumbled by 5.5 percent after the firm cut its annual profit projection by 28 percent on rising costs.

In Hong Kong, the Hang Seng Index slipped by 386.62 points or 1.52 percent at 25,063.17 points and the Hong Kong China Enterprises Index fell by 1.6 percent to 13,662.58 points.

China Petroleum & Chemical Corp. dipped by as much as 3.3 percent after the refiner reported that rising fuel prices cut its profit by 13 percent.

In Australia, the S&P ASX 200 index ended 0.9 percent higher at 5,772.40 points led by the financial sector.

Shares of National Australia Bank added as much as 6.2 per cent after the firm posted better results, closing up by 4.0 percent.

Australia & New Zealand Banking added 3.7 percent and Suncorp-Metway gained 1.3 percent in Sydney.

BHP Billiton Ltd. pushed shares of energy producers higher after oil futures traded above $124 a barrel. BHP advanced by 3.4 percent.

In the mining sector, Newcrest Mining added 1.6 percent, after gold traded at $883.70 an ounce.

In China, the Shanghai composite index closed 2.8 percent lower at 3,553.16 points, led by financial and airline sectors.

Shares of China Merchants Bank plunged by as much as 5.2 percent, followed by Shanghai Pudong Development Bank losing 5 percent on Friday.

After oil hit more than $124 a barrel, China Southern Airlines tumbled by 4.8 percent, China Eastern Airlines dipped by 3.9 percent, and Air China shed 2.9 percent.

Taiwan's Weighted Price Index lost 0.8 percent to 8,792.39 points and South Korea's Kospi closed down by 1.3 percent to 1,823.70 points.