In the UK the FTSE 100 has dropped 30 points to 5,351 in early trading as British Airways slumped on the back of rising oil prices.
British Airways has fallen 5p, or 1.6%, to 307.75p. But the rise in oil prices wasn’t all bad news as BP has risen 0.50p, or 0.08%, to 638.00p.
PartyGaming is the top riser after good results from smaller rival sportingbet. Its shares have risen 7.3% to 76.75p. SABMiller has fallen sharply on the back of its trading statement with shares falling 17p, or 1.6%, to 1,041p. Meanwhile GUS is also in favour after detailing its recent trading, shares have risen 6p, or 0.7% to 862.50p.
In Japan, the Nikkei 225 Stock Average fell 92.97 points, or 0.7%, to 13,463.74 at its close a short time ago, paced by exporters such as TDK and Toyota. The drop was caused by the minutes of a Federal Reserve meeting which showed the central bank will probably raise US borrowing costs further to contain inflation.
TDK, Japan's largest maker of magnetic heads for hard disk drives, fell 260 yen, or 3.1%, to 8,190. Fuji Photo Film, the world's fifth-largest seller of digital cameras, also dropped 50 yen, or 1.3%, to 3,770. Meanwhile Toyota fell 30 yen, or 0.6%, to 5,210. The company had 60% of its sales outside Japan last fiscal year.
Minutes from the Federal policy meeting, released yesterday, showed that policy makers were increasingly concerned about inflation after hurricanes Katrina and Rita and that "further rate increases would probably be required." Higher US interest rates may damp consumer demand in the US, Asia's biggest export market.
Some technology-related shares also dropped because of concerns that falling product prices will erode earnings. Sharp, Japan's largest maker of liquid-crystal displays, fell 17 yen, or 1%, to 1,662. Kyocera, the world's biggest maker of packaging for chips, lost 120 yen, or 1.5, to 7,800.
The winners included Mitsui Fudosan, Japan's biggest property developer by sales, which jumped 81 yen, or 4.8%, to 1,770. Mitsubishi Estate, the biggest by market value, rose 39 yen, or 2.5%, to 1,580, while NTT Urban Development, the real estate unit of Nippon Telegraph & Telephone, surged 60,000 yen, or 9.7%, to 678,000.
Expectations the recovery will reverse more than seven years of deflation has piqued investor interest in the nation's shares.
Shares of oil producers and suppliers including Inpex also gained along with a jump in oil prices. Crude oil for November delivery jumped 2.8% to $63.53 a barrel in New York.
Inpex, Japan's biggest oil explorer, gained 19,000 yen, or 2.4%, to 829,000, while its smaller rival AOC Holdings gained 30 yen, or 1.4%, to 2,160.
In the US, the Dow Jones Industrial Average made limited gains as it rose 14.41 points, or 0.14%, to end at 10,253.17. The increases were limited by concerns about corporate profits and rising crude prices.
The Dow's biggest boost came from IBM, which rose 2.4%, or $1.94, to $83.19, while the software company Microsoft saw its shares dip 0.2%, or $0.05, to $24.41.
Shares of General Motors also gained after US antitrust authorities said they would not oppose a plan by billionaire investor Kirk Kerkorian to increase his stake in GM. Shares of GM rose 3.7%, or $0.94, to $26.42 to help the Dow finish higher.
Alcoa launched the quarterly earnings reporting period on Monday, with the aluminium maker posting better-than-expected results. Its shares rose less than 1%, or $0.19, to $22.85.
Rising oil prices may have discouraged some investors from loading up on stocks as US crude oil for November delivery surged $1.73 to settle at $63.53 a barrel.
But the jump in oil prices buoyed the shares of oil company Exxon Mobil, which gained 1.5%, or $0.90, to $59.40, making Exxon the Dow's third-biggest positive influence.IFAonline
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Alongside Barrett, Hopkins, Boston and Thorman on 17 October