Asian Stocks Decline as ECB Disappoints, China Inflation Cools (Source: Bloomberg)
Asian stocks (MXAPJ) fell for a second day after the European Central Bank damped speculation it would step up debt purchases, and even after cooling inflation gave China room to loosen monetary policy. The MSCI Asia Pacific Index (MXAP) slid 1.4 percent to 115.69 as of 10:30 a.m. in Tokyo. All 10 industry groups on the measure dropped, with more than eight stocks falling for each that rose. Japan’s Nikkei 225 Stock Average (NKY) sank 1.6 percent after the nation’s economy grew less than the government’s initial estimate last quarter. Australia’s S&P/ASX 200 index fell 1.2 percent, while South Korea’s Kospi Index (KOSPI) declined 1.6 percent. Hong Kong’s Hang Seng Index fell 2 percent.
GLOBAL MARKETS-Stocks & commodities fall as hopes for EU summit fade
TOKYO, Dec 9 (Reuters) - Asian shares and commodities fell on Friday, while the euro remained under pressure, on growing doubts that European leaders could forge a credible plan to solve the euro zone's debt crisis at a summit later in the day.
"Markets won't be relieved by Europe agreeing to a fiscal discipline alone, and sentiment will only improve if the ECB, the ultimate source of funds, agrees to step in," said Junya Tanase, chief currency strategist at JPMorgan Chase in Tokyo.
COMMODITIES-Oil, copper lead losses after ECB comments
NEW YORK, Dec 8 (Reuters) - Oil and copper were headed for their biggest losses in two weeks on Thursday after comments by the head of the European Central Bank added to investors' worry about the region's debt crisis before a key summit.
"Draghi has not signaled any bond buying," said Arne Lohmann Rasmussen, commodities strategist for Danske Bank in Copenhagen. "I think the market was running ahead of itself hoping for that."
Oil dragged down by ECB comments; eyes EU summit
NEW YORK, Dec 8 (Reuters) - Crude oil futures fell for a second straight day on Thursday as disappointing comments from the head of the European Central Bank increased doubts among investors that the region's debt crisis will be contained.
"Although the ECB gave investors the rate cut and easier loan terms they were looking for, the markets remain nervous ahead of Friday's EU summit and not all the bulls are sticking around to see the outcome," said Tim Evans, energy analyst at Citi Futures Perspective in New York.
Saudi to supply full Jan crude to 1 Asia buyer-source
TOKYO, Dec 9 (Reuters) - Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil in January to at least one Asian term buyer, unchanged from December, an industry source familiar with the matter said on Friday.
Saudi Arabia made no changes to the operational tolerance in the supply allocation, the source added, meaning buyers have the option of asking for cargoes to be loaded with up to 10 percent more or less crude than contracted.
NYMEX-Natural gas mostly ends up after supportive EIA
NEW YORK, Dec 8 (Reuters) - Front-month U.S. natural gas futures mostly ended higher on Thursday in fairly active trade, backed by a government report showing a larger-than-expected weekly inventory draw despite mild extended weather forecasts that continued to limit gains.
"We're going to stay in this price range until something changes in supply or demand. There's plenty of gas around, and we need to see the weather get much colder," a Florida trader said, noting that the weekly inventory draw was below expectations.
Euro Coal-Prices stable despite oil fall
LONDON, Dec 8 (Reuters) - Physical prompt coal prices were little changed on Thursday despite a fall in oil prices and a stronger dollar after a day of extremely thin trading.
"The market's looking rather weak in the Atlantic and Pacific, it's been supported by oil and little else recently," one major European trader said.
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