In spite of a slight increase in the price of Brent crude oil, shares in most parts of Asia continued to fall in early Tuesday trading.
Asia Markets Down Despite Overnight Oil Prices Surge
In Japan, shares declined to negative as the strong yen hits many of the country’s biggest exporters. The Nikkei 225 rose by 1.35% in the early hours of trading but declined by 0.3% at the close of the markets.
Takata, the Japanese auto parts manufacturer saw its shares fall by 4.3% amidst reports that the company may be in for yet another recall case.
Recently, Takata, one of the largest airbag manufacturers in the world has seen numerous cars recalled because of airbag issues.
Australia’s ASX 200 closed the markets down by 0.435% as some of the largest lenders in the country weighed in on the index.
Qantas lost up to 5% in share value in spite of reporting its best profits of the first half of the year in its 95 years of existence.
According to Evan Lucas, an analyst at IG Markets, “The slide of Qantas shares on Tuesday was in part due to the rise in oil prices overnight.”
Mining giant BHP Billiton reported a significant last-half year net loss for the six months to December, coming to $5.67bn. The company warned of a continuation in the decline of commodity prices.
Even then, BHP Billiton’s shares closed the markets up by 2.62%, a rise that can be attributed to an increase in iron ore prices.
In China, shares were mostly in negative territory by Tuesday afternoon with the Hang Seng ending 0.25% lower, while the Shanghai Composite closed 0.8% down. In South Korea, the Kospi Index closed 11% down.
China markets have generally traded higher in spite of government data indicating exports fell by 25.4% in February, from a year earlier while imports saw a 13.8% decline.