Asian Energy Stocks Slide on Oil, Interest Rates; China Slumps July 19 (Bloomberg) -- Asian energy stocks fell on concern oil prices may slide further as central banks raise interest rates, slowing economic growth worldwide. Woodside Petroleum Ltd. and Reliance Industries Ltd. led declines.
``There's a definite trend toward rising interest rates globally, and it's weighing on our minds because it will have all sorts of spin-offs for earnings,'' said Troy Angus, who helps manage $53 billion at BT Financial Group in Sydney. ``We're keeping a close eye on companies' outlooks.''
The Morgan Stanley Capital International Asia-Pacific Index lost 0.1 percent to 117.60 as of 3:55 p.m. in Tokyo, extending a six-day, 8 percent drop. Toyota Motor Corp. led gains by exporters as the drop in oil to its lowest in a week reduced concern energy costs will sap consumer spending.
Japan's Nikkei 225 Stock Average added 0.4 percent to 14,500.26, halting a five-day, 7.2 percent decline. Stock markets also rose in Hong Kong, South Korea, Singapore, Malaysia, Thailand, Pakistan and Sri Lanka. They fell elsewhere.
The Shanghai Composite Index slid 2.3 percent in China, Asia's biggest loser. China's one-year lending rate will be increased by at least 25 basis points from 5.85 percent by Sept. 30, according to 19 of 21 economists surveyed by Bloomberg News yesterday. Five expect an increase as early as this month.
``An increase in interest rates will dent investment sentiment,'' said Zhao Zifeng, who oversees about $1.1 billion with China International Fund Management Co. in Shanghai.
Meanwhile, U.S. interest-rate futures showed traders see a 67 percent chance the Federal Reserve will lift rates a quarter- point to 5.5 percent on Aug. 8, up from a 59 percent chance before yesterday's price report.
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