Asian Commodity Stocks Fall on Oil Metal Prices Felix Soars

Asian commodity stocks fell, led by BHP Billiton Ltd., after oil sank to the lowest in almost four years and metals prices dropped on concern the global recession is deepening.

BHP Billiton, the world’s largest mining company and Australia’s biggest oil producer, sank 4.2 percent as oil fell below $44 a barrel and Merrill Lynch & Co. said prices may dive further. Inpex Corp., Japan’s largest oil explorer, tumbled 5.2 percent. Felix Resources Ltd. soared 58 percent in Sydney after saying it’s received “ongoing interest” in a takeover.

“We’re in an environment where demand is coming off, and that’s putting commodities under pressure,” said Matt Riordan, who helps manage $3 billion at Paradise Investment Management in Sydney. “Things have been slowing down pretty sharply.”

The MSCI Asia Pacific Index was little changed at 79.40 as of 9:37 a.m. in Tokyo, capping a 4 percent decline for the week. Measures of raw-materials and energy producers had the biggest declines among the 10 industry groups.

Japan’s Nikkei 225 Stock Average declined 0.1 percent to 7,914.24. Australia’s S&P/ASX 200 Index slid 0.2 percent, while South Korea’s Kospi Index advanced 0.8 percent.

In New York, the Standard & Poor’s 500 Index slid 2.9 percent after drifting between gains and losses at least 20 times. The U.S. Labor Department said the number of Americans receiving jobless benefits jumped to 4.09 million in the week ended Nov. 22, the most since December 1982. A separate report from the Commerce Department showed orders at U.S. factories in October sank the most since July 2000.

Oil, Copper

Crude oil in New York fell 6.7 percent yesterday to $43.67 in New York, the lowest settlement price since January 2005. Copper futures fell for a fifth day, losing 5.5 percent to the lowest close since May 2005.

Oil has retreated 70 percent from a record $147.27 a barrel on July 11 as expectations evaporated that demand in emerging markets would make up for the slump as developed economies slowed. Prices may slide below $25 a barrel next year if the global recession spills over into China, Merrill Lynch analyst Francisco Blanch said yesterday.

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Asian Commodity Stocks Fall on Oil Metal Prices Felix Soars