Overnight news: July oil futures jump 60¢ on OPEC:
biz.yahoo.com
Thursday June 4, 2:14 am Eastern Time
Asia markets mixed after U.S. dip, oil prices surge
(Adds oil price surge)
By Stuart Grudgings
SINGAPORE, June 4 (Reuters) - A hefty fall in U.S. stocks overnight forced some key Asian markets into early retreat on Thursday, but the overall picture was mixed as investors drew breath after recent heavy losses.
Shares in Hong Kong and Taiwan fared worst in the wake of Wall Street's one percent slide, each falling by more than two percent in early trade.
Other markets continued to take comfort from the yen's grip above 139 to the dollar, however, and crude oil prices roared higher on prospects that the oil ministers of key producing countries would meet to discuss a possible cut in global output.
New York Mercantile Exchange (NYMEX) July crude futures were trading at $15.41 per barrel, up 60 cents from the New York close overnight.
The surge came after reports that the oil ministers from Saudi Arabia, Mexico and Venezuela would meet later on Thursday, probably in Amsterdam, to discuss the possibility of cutting output by at least 500,000 bpd.
Tokyo shares were up slightly and Indonesia's bloodied markets were treading water ahead of a key news conference in Frankfurt, expected to yield details on the outcome of private debt talks with creditor banks. Officials said on Wednesday an agreement had been reached.
Regional currencies were little changed in early business, with dealers expecting some stability thanks to the yen's rebound against the dollar.
The dollar was trading at 138.20/30 yen at midday in Tokyo as traders remained wary that an expected meeting of G7 ministers next week could agree to boost the feeble Japanese currency.
The Australian dollar looked in need of similar help as it carved out new lows beneath 61 U.S. cents at the midsession and continued to bear the brunt of traders' anx Hang Seng index dropped 178.19 points, or 2.02 percent, to 8,641.03 after jumping 2.57 percent on Wednesday.
Dealers said the overnight fall in U.S. stocks, led by bearish high-tech issues, was the main culprit.
Taiwan stocks, always sensitive to movements in U.S. technology shares, also took a beating.
The main index ended 2.84 percent down at 7,425.96 as disappointment at the government's lack of action to boost the market also took its toll.
Early Jakarta shares were flat with traders waiting for the Frankfurt news conference, due at 1100 GMT, despite a comment by Indonesia's chief debt negotiator that he would announce ''good news.''
A successful rescheduling of Indonesia's $80 billion private sector debt is seen as crucial to restoring faith in its crisis-hit economy.
Jakarta's Composite Index was down 0.41 percent at 391.017 in morning trade and the rupiah was little changed at around 11,500 to the dollar.
The friendless Australian dollar was worth 60.81 U.S. cents at 0435 GMT after diving through 61 cents in early trade.
Analysts saw little to brake the currency's fall, with the central bank unlikely to hike interest rates and little chance of it being able to mount any effective intervention.
''The market wants to see a five as the first figure in the AUD (the Australian dollar) and has the weight to get its way,'' said one dealer. ''Yes, the fall has gone too far, but do you want to stand in front of a speeding truck?''
Sydney stocks were also lower. The All Ordinaries Index went into the lunch break 0.4 percent down at 2,649.9.
Tokyo's Nikkei index was trading 0.61 perce 529.99. Dealers said the market was awaiting Deputy Prime Minister Anwar Ibrahim's news conference at 0630 GMT on a special agency set up to take over the non-performing loans in Malaysia's banking system.
Singapore's Straits Times Index had shed 0.81 percent to 1209.93 by early afternoon. Thailand's SET Index was up 0.95 percent at 316.17.
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