Asia-Pacific stock markets weakened during trading on Monday\n(18\/5\/2026) amid growing investor concerns regarding the escalation of\ngeopolitical conflict in the Middle East.<\/p>\n
According to CNBC, market sentiment deteriorated after US President\nDonald Trump warned Iran to \u2018act quickly\u2019, sparking fears of disruptions\nto the global oil supply. In a post on Truth Social on Sunday local\ntime, Trump stated that \u2018the clock is ticking\u2019 for Iran and warned that\n\u2018nothing will be left\u2019 if immediate action is not taken. Trump also\nemphasised that \u2018time is of the essence!\u2019, though he did not specify the\nactions required from Tehran or the potential consequences.<\/p>\n
The rise in geopolitical tension immediately drove a surge in global\noil prices by more than 1%. Brent crude futures for July rose 1.34% to\nUS$110.72 per barrel, while West Texas Intermediate (WTI) June contracts\nstrengthened by 1.75% to US$107.26 per barrel.<\/p>\n
The majority of Asian exchanges moved into the red. Australia\u2019s\nS&P\/ASX 200 fell 0.76%, while Japan\u2019s Nikkei 2D5 weakened by 0.2%,\nthough the Topix saw a slight increase of 0.1%. In South Korea, the\nKospi and Kosdaq indices plummeted by more than 2%. Meanwhile, the yield\non the 10-year Japanese government bond surged by more than 8 basis\npoints to 2.785%, extending the global bond sell-off amid rising\ninflation concerns.<\/p>\n
Hang Seng index futures in Hong Kong stood at 25,733, lower than the\nprevious close of 25,962.73. Investors continue to monitor the high\ntensions between Washington and Tehran, despite a fragile ceasefire\nestablished in early April. The United States is reported to be\ncontinuing its blockade of Iranian ports, while Iran has kept the Strait\nof Hormuz closed since the conflict began, heightening market fears\nregarding the disruption of global energy distribution routes.<\/p>\n
Conversely, US stock index futures tended to move sideways following\nlast week\u2019s strong rally. Market participants are now awaiting quarterly\nearnings reports from Nvidia and several major US retailers. Dow Jones\nIndustrial Average futures fell 100 points or 0.2%, while S&P 500\nand Nasdaq-100 futures remained flat. In Friday\u2019s trading, Wall Street\nclosed lower due to pressure on technology stocks and rising US bond\nyields. The S&P 500 index corrected 1.24% to 7,408.50, while the\nNasdaq Composite dropped 1.54% to 26,225.14. The Dow Jones Industrial\nAverage also weakened by 537.29 points or 1.07% to 49,526.17.<\/p>\n
Profit-taking in technology stocks also weighed on the market\nfollowing recent sharp rallies. Intel shares fell by more than 6%, while\nAdvanced Micro Devices and Micron Technology dropped by 5.7% and 6.6%,\nrespectively. Nvidia shares also corrected by 4.4%, while Cerebras\nSystems plummeted 10% after previously surging 68% on Thursday following\nits Nasdaq debut. This decline in tech stocks underscores investor\nconcerns regarding high valuations in the AI sector amidst global\nuncertainty.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/middle-east-conflict-escalates-asian-markets-plunge-1780929267", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }