Oil Rises, Stocks Fall as Energy Assets Are Targeted – Asia Market Wrap
US equity futures fell alongside Asian stocks, prolonging a tumultuous week as oil prices rose following an attack on tankers in Iraqi waters, which underscored the vulnerability to Middle Eastern energy infrastructure and fuelled fears of an intensifying conflict.
Contracts for the S&P 500 Index and Nasdaq 100 were down about 1%, while an index of Asian stocks fell about 2%. Brent crude returned to above $100 per barrel as the assault on tankers forced Iraq to halt operations at its oil ports, while Oman withdrew all vessels from a vital export terminal as a precaution. Separately, Bahrain claimed Iran targeted its fuel tanks.
Energy markets remained the most important focus for investors as supply disruption worries fuelled inflation predictions. The continuing spike in oil prices indicated that fears of a lengthy battle outweighed the respite provided by wealthy nations’ largest-ever emergency transfer of crude stockpiles.
In other markets, the Dollar index rose 0.2%, while cryptocurrencies fell. This year, the Yen has remained close to its worst level against the Dollar. On Thursday, the Japanese Yen temporarily dipped to 159.24 per Dollar, approaching the 159.45 level that caused the Fed to conduct a “rate check” in January.
More over a third of surveyed economists believe the BoJ will raise its benchmark interest rate in April after keeping policy settings unchanged next week.
