By Chao Deng 

Asian markets slipped Wednesday amid escalating geopolitical tensions, after Turkish military shot down a Russian jet fighter, though a rise in commodity prices lifted some resource shares in the region.

The Nikkei Stock Average fell 0.5%, the S&P/ASX 200 fell 0.6% and South Korea's Kospi lost 0.4%.

Hong Kong's Hang Seng Index fell 0.6% and the Shanghai Composite Index fell 0.2%.

Liquefied Natural Gas Ltd. and Santos Ltd. were up 3.9% and 1.7%, respectively, after oil prices rose overnight, although the energy sector on the S&P/ASX 200 gained just 0.1%.

BHP Billiton Ltd. rose 0.4%, after commodities including copper and nickel rose sharply overnight.

On Tuesday, Turkey shot down a Russian jet fighter along the Syrian border, an incident that threatens to undercut growing efforts to create a new international coalition to confront expanding Islamic State terrorism. The Middle East is the world's most prolific oil-producing region, though Syria itself produces very little oil.

"Once [the] initial reaction calmed, commodities continued to rally," said Evan Lucas, market strategist with brokerage IG. "Russia would not want to take this too much further."

The Dow Jones Industrial Average fell as much as 109 points but turned higher by the close, as energy stocks posted strong gains. An uptick in the price of oil helped boost energy companies in the S&P 500, which rose 2.5%, the best-performing sector in the index.

Copper futures closed higher for the first time in three sessions Tuesday in London. The London Metal Exchange's three-month copper contract gained 2.6% to $4,608 a metric ton, having hit a six-year low earlier in the session. Nickel closed up 5.7% at $8,770 a ton.

In Japan, defense shares were mixed. Kawasaki Heavy Industries Ltd., which makes transport aircrafts for Japan's military fell 1.4%, while Fujitsu Ltd., which makes communication technologies for field information, gained 0.1%.

In Australia, the materials sector gained 0.1%, recovering from steep losses Tuesday, when many base metals fell to multiyear lows.

But most mining shares were still under pressure after iron-ore prices lost 1.8% on Tuesday to $43.40 a ton, the lowest level in the seven years. Rio Tinto Ltd. fell 1.3% and Fortescue Metals Group Ltd. lost 3.7%.

In China, shares are up roughly 24% as of their close Tuesday from August lows. Authorities have lifted a restriction imposed on brokerages during the summer stock-market rout, no longer requiring them to buy more shares they sell in daily proprietary trading.

The region also remains focused on the European Central Bank, which is expected to boost stimulus as it battles low inflation, and the Federal Reserve, which is expected to raise interest rates next month.

Brent crude oil was down 0.4% at $45.94 a barrel. Oil prices rose in the U.S. following news that the jet had been downed, with U.S.-traded crude 3.2% higher at $43.07 a barrel.

Gold prices were flat at $1,074.70 a troy ounce.

Write to Chao Deng at Chao.Deng@wsj.com

 

(END) Dow Jones Newswires

November 24, 2015 21:08 ET (02:08 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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