Energy stocks underperform in Asia amid oil price drop

Hong Kong - Asian shares fluctuate as energy companies fell on lower oil prices, offsetting gains in property stocks.

The MSCI Asia Pacific Index little changed as of 09:55 following, erasing an earlier decline. Oil fell for a third day as industry data showed US crude stockpiles rose. Investors are also sifting through earnings reports and awaiting further signals from the new US administration.

“The market is likely to move sideways until there is more clarity on Trump policies,” said Alan Richardson, a Hong Kong-based investment manager at Samsung Asset Management. “Oil’s upside is capped by supply risks, and it’s unlikely to see strong earnings in the energy sector.”

The MSCI Asia Pacific Energy Index declined 0.6%. JX slumped 2.6% in Tokyo, while PetroChina dropped 1.2% in Hong Kong.

Real estate stocks rose as analysts at Goldman Sachs and Citigroup said China’s property developers are in far better shape than their rock-bottom stock valuations indicate. Country Garden jumped 7.6%, China Resources Land added 5.7%.

The Topix index gained 0.2%, while the Shanghai Composite Index dropped 0.3%. The Hang Seng Index fell 0.1%. The S&P/ASX 200 rose 0.5%, while South Korea’s Kospi slipped 0.6%.

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