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Asian shares lose ground as Wall St sags

Hong Kong - Asian stocks lost ground on Wednesday as China's market declined and US markets fell on worries about surging oil prices.

Sydney tumbled 134.3 points to close at 5 692.2 after heavyweights Commonwealth Bank and Woolworths slumped on disappointing earnings updates.

South Korean shares lost 1.3% to end at 2 104.58, and Hong Kong ended down 114.63 points at 27 640.91.

Tokyo was closed for a holiday.

Shanghai fell 1.62% to close at 4 229.27, after plunging more than 4% the previous session.

"Shanghai continued to fall today because the market correction is not over yet," Zheshang Securities analyst Zhang Yanbing told AFP.

On Wall Street the Dow Jones Industrial Average Tuesday dropped 142.20 points to 17 928.20, weighed down by a rise in US oil prices above $60 a barrel.

"Markets are a little tired," Wayne Wilbanks, chief investment officer at US-based Wilbanks, Smith & Thomas Asset Management told Bloomberg Television.

"Investors are starting to wake up to the reality that there's not a whole lot of growth currently in the market. China is slowing down. What we have there is huge monetary stimulus which is causing this stock market semi-bubble," he said.

Analysts also cited a sharp rise in the US trade deficit in March and the growing rift between Greece and its creditors over the terms of a bailout.

European stocks fell sharply Tuesday, with Germany's DAX 30 dropping 2.5% and France's CAC 40 losing 2.2%.

Oil prices extended gains in Asia to trade at 2015 highs as fresh tensions in oil producer Libya raised concerns about a supply disruption in the crude-rich Middle East.

US benchmark West Texas Intermediate for June delivery gained 87 cents to $61.27, while Brent crude for June rose 63c to $68.15 in afternoon trade.

In currency markets, the US dollar softened against the euro following weak US trade data that raised questions about whether a planned interest rate rise by the Federal Reserve could be pushed back.

The euro bought $1.1232 in Singapore afternoon trade, up from $1.1185 in New York late Tuesday.

The dollar was changing hands at ¥119.90 from ¥119.87 and the euro was at ¥134.57 from ¥134.08.

Trading however was subdued with Japanese financial markets closed for a public holiday.

Gold fetched 1 196.42 against 1 188.70 late on Tuesday.

In other markets:

- Taipei edged down 1.93 points to 9 818.2

Taiwan Semiconductor Manufacturing Co closed 0.34% higher at Tw$147.5 while Fubon Financial Holding shed 1.78% to Tw$66.3.

- Wellington fell 22.52 points to 5 765.27.

Market heavyweight Fletcher Building slipped 0.95% to NZ$8.30 and Spark was down 0.34% at NZ$2.96.

- Kuala Lumpur slipped 6.45 points to close at 1 820.97.

Public Bank lost 0.51% to 19.36 ringgit and Maybank eased 0.43% to 9.21 while Genting Bhd added 0.89% to 9.08 ringgit.

- Singapore closed down 0.33% at 3 459.79.

Commodity traders Noble Group declined 3.37% to Sg$0.86 while DBS Bank climbed 0.73% to Sg$20.85.

- Jakarta ended up 0.48% at 5 184.95.

Construction firm Wijaya Karya gained 2.77% to 2 970 rupiah, while telecoms infrastructure company Tower Bersama Infrastructure slipped 1.99% to 8 600 rupiah.

sls/sm

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