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Hong Kong - Shares in energy firms tumbled on Friday after oil prices hit four-year lows in reaction to Opec's decision to ignore calls for an output cut, although the prospect of cheaper fuel sent airlines surging.
Sydney's ASX/S&P 200, the home of commodity giants such as BHP Billiton, Woodside and Santos, was the stand-out loser, although Asian stock markets were mixed as cheaper oil means lower import costs.
At a closely watched meeting on Thursday the Organisation of the Petroleum Exporting Countries (Opec) said it would "maintain the production level of 30 million barrels per day", where it has been for the past three years.
The 12-nation cartel, which pumps a third of global oil supplies, made the move despite calls from around the world - including from some of its own members - to cut output as prices have fallen by a third since June.
The news was greeted with a huge selloff on oil markets, with both main contracts diving around 5% to four-year lows. New York's West Texas Intermediate (WTI) at one point slumped to $67.75 a barrel and London's Brent North Sea crude touched $71.25 - both four-year troughs - before slightly recovering.
In afternoon Asian trade WTI was at $68.08, down 97 cents from its settle price in electronic trading in New York on Thursday. US floor trading was closed due to Thanksgiving. Brent dropped $1.31 to $71.27.
READ: Oil could hit $60 as supply cut hopes fade
"It seems there were still plenty of traders holding out hope that the supply of oil from the world's largest group of producers would be cut," Scott Schuberg, chief executive at Rivkin Securities in Sydney, told Dow Jones Newswires.
Airlines rally
Among regional markets Sydney sank 87.9 points to close at 5 313.0 and Seoul was flat, edging down 1.31 points to 1 980.78.
Shanghai rallied 52.35 points to 2 682.84 on reports China will soon launch an anticipated deposit insurance system, which would allow more banks to freely compete for depositors. Hong Kong ended flat, dipping 16.83 points, to 23 987.45.
Tokyo jumped 211.35 points, to finish at 17 459.85. The Nikkei was helped by a weakening yen and the lower oil prices, which will cut import costs. Japan has ramped up imports of the black gold to make up for lost energy caused by the shuttering of the country's nuclear power stations.
In Sydney the biggest casualty was Santos, which plunged 13.00%, while BHP Billiton lost 3.37% and Woodside was off 7.07%.
Hong Kong-listed shares in CNOOC shed 5.50% and PetroChina sank 3.33%.
However, Asian airlines - whose main cost is fuel - soared. In Hong Kong, Air China jumped 6.44% and Cathay Pacific gained 5.04%, while Tokyo-listed Japan Airlines added 5.28% and rival ANA jumped 7.39%. Qantas gained 6.96% in Sydney and Korean Airlines was up 4.74% in Seoul.
On foreign exchange markets the euro was mixed after sinking on Thursday in reaction to speculation the European Central Bank could begin buying government bonds as part of a monetary easing drive.
The euro bought $1.2459 against $1.2460 and ¥147.25 compared with ¥146.74.
The yen came under pressure again after data showed inflation slowing in October from the previous month.
The dollar was trading at ¥118.17, up from ¥117.74 in London.
Gold was at $1 182.86 an ounce, compared with $1 196.58 late on Wednesday.
In other markets:
- Taipei rose 21.84 points to 9 187.15. Taiwan Semiconductor Manufacturing Co added 1.07% to Tw$141.5, while Cathay Financial Holdings edged up 0.20% to Tw$49.9.
- Wellington dropped 30.93 points to 5 424.44. Contact Energy was down 1.13% at NZ$6.10 and Spark fell 1.45% to NZ$3.06.
- Manila added 29.04 points to 7 294.38. Ayala Corp rose 1.02% to 694 pesos, Southeast Asia Cement Holdings gained 13.7% to 2.49 pesos and Philippine Long Distance Telephone closed unchanged at 2 990 pesos.
- Mumbai rose 255.08 points to end at 28 693.99 points. Tata Motors was up 2.78% at 532.95 rupees and Reliance Industries was up 0.37% at 990.85 rupees.
- Bangkok closed down 5.91 points at 1 593.91. Oil company PTT Exploration and Production fell 5.24% to 135.50 baht, while Bangchak Petroleum dropped 3.40% to 35.50 baht.
- Malaysia's main stock index lost 0.49% to close at 1 820.89. SapuraKencana Petroleum shed 9.4% to 2.80 ringgit, while UMW Oil and Gas Corp slumped 11.3% to 2.83 ringgit. Budget carrier AirAsia gained 7.5% to 2.58 ringgit.
- Jakarta ended up 4.57% points at 5 149.89. Paper manufacturer Pabrik Kertas Tjiwi Kimia gained 2.73% to 940 rupiah, while tin miner Timah slipped 1.61% to 1 225 rupiah.
- Singapore rose 9.54 points to 3 350.50. Agribusiness company Wilmar International fell 0.93% to Sg$3.21 while Singapore Airlines gained 2.57% to Sg$10.78.
