Oil Rises & Stocks Fall Due to Concerns About Iran War Growing – Asia Market Wrap
Stocks fell further, while oil climbed, as Iran-backed Houthi rebels entered the Middle East conflict and an enlarged US military deployment fanned fears of a protracted battle. Government bonds have advanced.
A drop in technology equities drove down South Korea’s benchmark index by 3.2%, while Japanese firms trading ex-dividend saw the Nikkei 225 fall 3.4%. A barometer of Asian markets sank % on concerns that rising crude oil prices would stifle economic growth.
Contracts for the S&P 500 Index recovered losses and traded little altered, indicating that some of the selling pressure may be lessening. European equity-index futures fell 0.8% from their session lows.
Brent crude rose 2.5% and is now trading around $115 per barrel, thanks in part to a drop from session highs. Oil prices have soared by roughly 90% this year. Aluminium prices rose as much as 6% after Iran bombed two production facilities in the Middle East as the conflict entered its fifth week.
According to credit traders, the cost to insure Asian investment-grade debt increased by nearly 2 bps on Monday to around 94 bps, the highest level since May 2025. India’s rupee had its greatest gain since February after a central bank policy aimed at reducing speculation spurred a rush among lenders to sell Dollars.
