Asian Mining Stocks Rise After China Snowstorms Cut Production
By Chua Kong Ho
Feb. 1 (Bloomberg) -- Asian mining stocks rose, led by BHP Billiton Ltd. and
Zinifex Ltd., after the worst snowstorms in decades in China halted production
and drove up prices of coal and zinc.
BHP, the world's largest mining company, gained to a two- week high and
Zinifex, the world's third-biggest zinc producer, surged after the price of the
metal rose the most in nine months. Sony Corp. fell, dragging Japan's Nikkei
225 Stock Average lower, after the world's second-largest maker of consumer
electronics cut an earnings target.
``The transport bottlenecks in China may lead to a short- term spike in
commodity prices and that will benefit some mining companies,'' said Mark Tan,
who helps oversee $3 billion in Asian equities at UOB Asset Management in
Singapore.
The MSCI Asia Pacific Index was little changed at 143.50 at 12:47 p.m. in
Tokyo. The measure has fallen 1.6 percent this week, headed for its fifth week
of declines, the longest losing streak since the seven weeks to Aug. 14, 2004.
Half of the index's 10 industry groups advanced, led by a measure of
commodity stocks. Australia's S&P/ASX 200 Index surged 2.2 percent, the
region's biggest advance. The Nikkei 225 index fell 0.9 percent to 13,474.21.
China's CSI 300 Index slumped 3.7 percent to a six-month low.
Networks Paralyzed
China's benchmark CSI 300 has plunged 12 percent this week, set for its worst
weekly performance since the measure was introduced in 2005, as the heaviest
snowfalls since 1954 paralyzed transportation networks and shut power plants
across the country.
Zhuzhou Smelter Group Co., China's largest zinc smelter, halted its main
production plants Jan. 29 because of power cuts and snowstorms, the company
said today. Zhuzhou has shut down all of its zinc and lead plants. China was a
net exporter of zinc in 2007 and supplies a third of the world's lead.
BHP gained 3.5 percent to A$38.33. Zinifex rose 5.9 percent to A$10.89. Korea
Zinc Co., the world's second-biggest zinc refiner, climbed 14 percent to
124,000 won in Seoul, the largest jump since October 2004. Toho Zinc Co., a
Tokyo-based smelter, surged 13 percent to 532 yen, the steepest gain since June
2005.
A measure of six metals traded on the London Metal Exchange, including copper
and nickel, added 2.7 percent yesterday. Copper advanced 2.7 percent, nickel
rose 0.6 percent, and zinc increased 7 percent, the most for nine months.
Sony, Matsushita
Sony fell 6.5 percent to 4,880 yen, the biggest drag on MSCI's Asian index,
after the company forecast a lower annual operating profit than analysts
estimated.
Matsushita Electric Industrial Co., Sony's bigger rival, climbed to a
one-month high after reporting a record profit. The maker of Panasonic-brand
consumer electronics gained 3.6 percent to 2,330 yen after saying third-quarter
profit rose 46 percent to a record on digital cameras and flat-panel
televisions.
TDK Corp., the world's largest maker of disk-drive heads, jumped 11 percent
to 7,550 yen, the most in more than four years after profit beat estimates.
Taiwan Semiconductor Manufacturing Co. advanced 1.5 percent to NT$60.80 after
the world's largest custom-chip maker said fourth-quarter profit increased to a
record.
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