Asian Shares Mixed, Australia Gains

By Chao Deng 

Stocks in Australia climbed Tuesday as crude oil prices rebounded, while Japan edged down after Moody's Investors Service downgraded its credit.

The S&P/ASX 200 was up 0.7% at 5242.0, supported by a recovery in the energy sector. Benchmark U.S. oil prices on the New York Mercantile Exchange surged 4.3% to $69 a barrel overnight, its largest percentage gain in more than two years in a rally that snapped four sessions of losses.

Australia's benchmark index has been one of the worst performing stock markets in Asia Pacific in the past month, with a more than 5% loss. Only Vietnam's significantly smaller stock market has performed worse, declining 5.5% in the same period.

But on Tuesday, Australia rebounded from a 3.6% loss in the last two trading sessions, when investors worried that a sustained drop in oil prices would weigh on the bottom line of the country's oil producers. An index of the energy sector was up 2.7%.

Sectors such as airlines that benefit from lower oil prices also rallied. Oil prices are still down 26% in a five-month selloff and investors expect long-term weakness in oil prices.

Qantas Airways Ltd. was up 1.6%, toll road operator Transurban Group Ltd. was up 1.4% and logistics provider Toll Holdings Ltd. was up 1.0%.

In Japan, stocks were lower following the downgrade of the country's credit rating by Moody's. The Nikkei Stock Average was last off 0.2%. Moody's made its announcement after the market closed yesterday.

Write to Chao Deng at [e-mail]

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