Asian Commodity Stocks Higher after Oil and Gold Bounces

Asian mining and energy companies rebounded after oil jumped from a five-year low. South Korea’s won led emerging-market currencies higher while gold resumed declines.

BHP Billiton Ltd. (BHP), the world’s largest mining company, climbed 3.3 percent by 10:38 a.m. in Tokyo, the biggest support to the MSCI Asia Pacific Index today. West Texas Intermediate crude retreated 0.6 percent after yesterday’s 4.3 percent surge from its lowest settlement since September 2009. The won strengthened 0.4 percent and Malaysia’s ringgit added 0.2 percent after capping its steepest two-day retreat since the Asian financial crisis. Gold fell 0.3 percent to $1,208.86 an ounce.

Volatility in materials and energy is at a more-than two-year high as prices for crude to metals swing amid concern over supply gluts and the slowing global economy. The Bloomberg Commodity Index (BCOM) touched a five-year low yesterday before rebounding. Australia and India are projected to keep benchmark borrowing costs unchanged today, with the euro region to report producer prices before its own rate review later this week.

Bloomberg

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