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China shares fall as crude oil surges
2008-05-06
SHANGHAI, China (AP) -- China stocks fell Tuesday as record high crude oil prices raised doubts over corporate earnings and triggered the selling of airline and automotive shares.The benchmark Shanghai Composite Index fell 0.7 percent to 3,733.50. The Shenzhen Composite Index also fell 0.7 percent, to 1,122.65. June crude oil futures rose to an all-time high near US$121 a barrel Tuesday in electronic trading on the New York Mercantile Exchange, fueled by worries about threats to supply and a weakening of the U.S. dollar. "High flying oil prices will lead to rising costs for air carriers and weigh on demand for automobiles," said Li Bin, an analyst at Capital Securities. China Eastern Airlines slid 4.2 percent to 11.30 yuan, China Southern Airlines lost 5.3 percent to 13.18 yuan and Air China shed 5.2 percent to 15.46 yuan. Automaker SAIC Motor fell 3.7 percent to 15.65 yuan. FAW Car lost 4.7 percent to 14.98 yuan. Chongqing Changan Automobile declined 2.9 percent to 10.80 yuan. In currency dealings, the U.S. dollar was at 6.9865 around 0730 GMT on the over-the-counter market, down from Monday's close of 6.9868.
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