Falling iron ore prices weigh on Asian shares

Sydney : Asian markets experienced mixed fortunes on Tuesday following declines in the US and as slumping iron ore prices continued to hurt mining companies. In Australia, the S&P/ASX 200 closed down 0.95% at 5,226.40.Analysts said iron ore prices were continuing to move towards the decade low reached earlier this year. The commodity is Australia’s biggest export and was trading at $44.20 a tonne in China on Monday. Independent economist and commodities specialist Andy Xie has predicted that iron ore prices will fall below $40 a tonne before the end of the year. He said prices could even sink as low as $30 for much of next year as demand from China continues to decline. Three of the biggest iron ore producers recorded falls in their Sydney-listed shares. BHP Billiton closed down 1.8%, Rio Tinto fell 1.5%, while Fortescue Metals was the biggest loser, sinking 3.2%. Japan’s Nikkei index spent much of the day flat but made gains late in the day to close up 0.23% at 19,924.89 points. Shares in the country’s troubled electronics maker Sharp surged more than 35% at one point on reports its lenders may waive some of its debts. Without citing sources, Kyodo News said a state-backed fund may invest in Sharp if Japanese lenders agreed to write off an unspecified amount of its debt. Investors seem to shrug off fresh numbers released earlier on Tuesday that showed Japan’s manufacturing activity expanded in November as new orders and output increased.