Many small investors have recently piled into commodities, especially copper, on the assumption that ever-growing demand from developing countries would keep sending prices skyward. Now they are learning a drop in demand is also possible, and prices have been plummeting.
In Asia Tuesday Hong Kong's Hang Seng Index advanced 0.8% to 23,428 and China's Shanghai Composite Index rose 0.7% to 2,876. In Japan the Nikkei 225 Index slid 0.3% to 10,141.
A building boom -- and the constrained supply of materials due to mandated energy cuts -- sent Chinese cement, metal and building-equipment stocks up Thursday. Meanwhile, Hong Kong and Japanese exporters benefited from improving consumer sentiment and falling unemployment in the U.S.
Political upsets in Peruvian regional elections could indicate a national shift to the left -- and some business leaders worry that could discourage foreign investment in the country, which has rich natural resources such as oil, gas and gold.
Gold prices hit a record high Tuesday and may reach a record $1,300 an ounce later this year as investors fearing debt crises and potential inflation from interest rate cuts may put more of their money into the precious metal.
