Asian stocks down as oil surges past $49

Asian stock markets were mostly down today as NYMEX crude oil surged past US$49.

Tokyo’s Nikkei 225 closed 0.3 percent down to finish at 10,859.32, the Taiwan Weighted Index closed at 5,849.22, down 0.7 percent, while Hong Kong's Hang Seng Index closed at 13,021.90, down 0.3 percent.

Singapore's Straits Times Index was the only gainer, closing at 1,983.39, up 0.5 percent.

With the northern hemisphere winter coming, NYMEX crude above US$50 now looks very probable. Despite all the talk about oil still being cheaper in real terms than in the late 1970s, such a large rise in oil price over the past year must have a negative impact on the world economy.