SYDNEY, Australia: Asian stocks slumped today as soaring oil and gas prices due to escalating Middle East conflict spooked markets and fuelled demand for safe-haven assets, reported dpa-AFX.
After the United States (US) and Israeli forces attacked Iran, Tehran retaliated by striking US embassies and threatening regional economies.
Shipping through the Strait of Hormuz was halted, quadrupling tanker costs and causing global air transport chaos.
Gold prices were up more than 1 per cent in Asian trade, recovering some of the losses in the previous session even as the dollar index extended gains for a third day running amid escalating geopolitical tensions and reduced expectations for interest rate cuts from the Federal Reserve.
Oil prices continued to rise, with Brent crude contract climbing above USD83 (RM324.53) a barrel on signs the war in Iran is expanding into a broader regional conflict.
With Iran seemingly intent on continuing its strikes against Gulf targets, regional leaders are mulling whether and how to respond.
China’s Shanghai Composite index fell 0.98 per cent to 4,082.47, with oil and shipping stocks leading losses on Hormuz closure fears.
Hong Kong’s Hang Seng index tumbled 2.01 per cent to 25,249.48 after the release of mixed Chinese PMI data.
While official data showed a second straight month of contraction in the Manufacturing Purchasing Managers’ Index (PMI), a private survey revealed the strongest PMI in more than five years.
Japanese stocks were hit hard on concerns over surging oil prices and potential supply disruptions.
Chip-related stocks led losses, with Tokyo Electron, Advantest and SoftBank Group plummeting 4 per cent to 7 per cent.
The Nikkei average briefly lost over 2,600 points before recovering some lost ground to end the session down 3.61 per cent at 54,245.54, extending losses for a third consecutive session.
The broader Topix index tumbled 3.67 per cent to 3,633.67.
Seoul stocks fell by the most since the global financial crisis while the won slid to a 17-year low as surging crude prices raised concerns about manufacturing costs and export competitiveness.
The Kospi average plunged 12.06 per cent to 5,093.54, extending losses for a second consecutive day and recording its largest-ever daily loss, with shipping and semiconductor giants, Samsung Electronics and SK Hynix, taking the hardest hit.
At one point, the Korea Exchange triggered a circuit breaker, temporarily halting trading.
Australian markets closed at a three-week low as escalating tensions in the Middle East fuelled inflation concerns and overshadowed stronger-than-expected domestic gross national product (GDP) data for the fourth quarter.
Data showed the economy grew at an annual rate of 2.6 per cent in the December quarter, marking the fastest pace in almost three years.
The benchmark S&P/ASX 200 fell 1.94 per cent to 8,901.20, dragged down by gold miners, financials and airline stocks.
The broader All Ordinaries index settled 1.94 per cent lower at 9,117.10.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index dropped 0.65 per cent to 13,531.12, extending losses for a third straight session as the US-Israeli war against Iran widens.
As oil prices surge to their highest levels in over a year, President Donald Trump stressed that the US would ensure the “free flow of energy to the world” under any circumstances. – BERNAMA-dpa-AFX
