ONGC, RIL among likely winners in Asian markets from China’s energy crunch
The global spike in energy prices and China’s crackdown on power consumption look set to create more losers than winners in Asian equities as production costs surge and output takes a hit.
Chinese stocks dominate the watch lists of traders, given that the country is the world’s biggest consumer of electricity and largest exporter of goods. Factories churning out everything from toys to vital components for Apple Inc. and Tesla Inc. have been caught in the fallout.
The region’s coal and natural gas producers will benefit in the short term from higher prices while their green-energy rivals should gain in the longer run. Energy-intensive sectors that make metals and chemicals may have the most to lose.
