Asia's Energy Shares Lower as Oil Falls

A fresh selloff in oil prices sent energy shares across Asia lower Tuesday.

On Australia's S&P/ASX 200, the sector fell 0.5%, putting its month-to-date losses at 8.5%. Energy shares on Hong Kong's Hang Seng Index were down 0.6%, and off 2.7% month-to-date.

In broader markets, shares seesawed between gains and losses. The Shanghai Composite Index was flat and Hong Kong's Hang Seng was up 0.2%.

Japan's Nikkei Stock Average was flat and Australia's S&P/ASX 200 was up 0.6%, reopening after the Boxing Day holiday Monday.

South Korea's Kospi fell 0.3%.

While lower oil prices are generally positive for resource-scarce Japan, investors also see the trend as a sign of slowing global demand. Steelmakers in Japan led declines, with Nippon Steel & Sumitomo Metal Corp. down 2% and JFE Holdings Inc. off 2.9%.

Global commodity prices continue to drive market movements in the region, amid a lack of major economic data as the year draws to a close and as trading volumes thin. A global glut of crude oil has contributed to a 30% fall in U.S. oil prices this year, weighing energy shares globally.

Last week's respite in oil-price declines helped lure investors back to the energy sector. But U.S. crude prices fell again Monday, down 3.4% to $36.81 a barrel.

U.S. stocks slipped overnight, with energy stocks notching some of the steepest declines, including Chevron Corp. on the Dow Jones Industrial Average.

Brent crude oil prices were last down 0.1% at $36.58 a barrel in Asia trade Tuesday.

Despite modest gains in China Tuesday, investors still have a number of concerns: scrutiny by Chinese officials over capital flight as the economy slows; a potential flood of new shares to the market next year as China launched a registration-based IPO system; and possible selling by large Chinese shareholders next year, once authorities allow them to. A six-month ban on selling by large shareholders put in place during July is set to expire in early January.

In Hong Kong, property developer China Vanke Co., whose management is in the middle of a fight to maintain control of the company from a group of activist shareholders, said Tuesday that it has signed an initial agreement to buy a company, without giving details of the potential target or seller. The move would lead to an issuance of new shares, which would help Vanke fend off attempts by the activist group, led by Baoneng Group, to buy it.

Shares of the firm remained suspended having soared 19% this month, through Dec. 18.

Shares of Real Nutriceutical Group Ltd., which has been targeted by short seller Glaucus Research Group California LLC, were up 1.2% after the firm said late Monday that its chief executive had stepped in to support the stock. Shares plunged 16% Monday when they resumed trading for the first time following a suspension on Oct. 22. The firm sells nutritional supplements and health drinks.

Gold prices were up 0.3% at $1,068.10 a troy ounce.

Kosaku Narioka contributed to this article.

Write to Chao Deng at Chao.Deng@wsj.com

(END) Dow Jones Newswires

December 28, 2015 21:35 ET (02:35 GMT)

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