19 August 2011 10:46 [Source: ICIS news]
(updates closing share prices, closing indices, other details)
A plunge in a
The result marked the weakest reading since early 2009, according to the Commonwealth Bank of
A fall in
A dip in European markets on Thursday fanned further concerns over the economic health of the region.
Banks led the fall after a report that US regulators are stepping up scrutiny of the local operations for
Worries over demand dragged crude oil prices lower, with West Texas Intermediate (WTI) light sweet crude for September delivery down by $2.15/bbl to $80.23 at 17:08 hours Singapore time (09:08 GMT).
“Global crude oil prices fell on disappointment there was no concrete plan to address the euro debt crisis,” said Commonwealth Bank of
In the Asian chemicals markets, propylene spot discussions were put on the backburner on Friday following the falls in oil prices.
“Following the crude price drop, sentiment is quite unstable,” said a Japanese propylene trader.
Earlier this week, deals were heard done at $1,580-1,600/tonne (€1,106-1,120/tonne) CFR (cost & freight) NE (northeast) Asia for September arrival, but no firm discussions were heard on Friday morning.
On Friday, prices for butadiene rubber (BR) fell by CNY800/tonne ($125/tonne) to CNY32,500-34,500/tonne EXWH (ex-warehouse).
Chinese domestic styrene butadiene rubber (SBR) prices, meanwhile, fell by CNY500/tonne to CNY31500-33100/tonne EXWH.
Weak demand, bearish market sentiment and fears of a global slowdown have prompted traders to offload their material at reduced prices, exerting more downward pressure on prices.
The import prices of non-oil grade 1502 SBR fell by $100/tonne to $4,300-4,400/tonne CIF (cost, freight & insurance)
The Nikkei stock average was hit by concerns about a 6.8-magnitude earthquake that hit the northeast region of the country at 14:36 hours Japan time (05:36 GMT).
In South Korea, LG Chem slumped by 14.69% and SK Innovation fell by 13.33%, with the Korea Composite Stock Price Index ending 6.22% lower at 1,744.88 points.
In Malaysia, PETRONAS Chemicals Group slipped by 2.58%, with the benchmark Kuala Lumpur Composite Index down by 1.29%, or 19.32 points, to 1,483.98 points at the close.
“The recent violent equity market sell-off has brought unpleasant memories of 2008 back to investors' minds,” said UBS Wealth Management Research’s note.
“Following the many risk events financial markets had to absorb over the past months, the concern in focus now is a more fundamental one: global growth,” the note said.
“With uncertainty being the last thing equity investors want to deal with, and with no quick fix in sight for the global growth concerns, we expect market volatility to remain high,” it added.
Additional reporting by Peh Soo Hwee, Helen Yan, Sunny Pan and Miki Jiang
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