Asian Markets Open Mixed as US-Iran Conflict Fears Escalate

Asian stock markets opened mixed on Monday as investors grew increasingly anxious over the escalating conflict in the Middle East, while awaiting key central bank agendas this week. China’s market was relatively stable, with the Shanghai Composite Index at 3,763.80, down slightly by 0.01%, and the Shenzhen Component Index at 13,706.884. Hong Kong’s Hang Seng Index (HSI) stood at 24,562.24. In Australia, the S&P/ASX 200 managed to gain, rising 0.18% to 8,812.20. In contrast, South Korea’s KOSPI Index fell 1.09% to 6,746.33. Japan’s Nikkei 225 was closed for a holiday, having last closed down 4.03% at 64,141.12 on Friday. Investors continued to monitor the Middle East conflict, where tensions between the United States and Iran intensified over the weekend. US military forces struck Iran for the eighth consecutive night on Sunday, while Iran increased air strikes on US bases in the region. The escalating hostilities further strained a fragile ceasefire between the two nations. US Central Command (Centcom) stated that a third service member was killed in recent fighting, and US forces also discovered an unidentified body near the site of an Iranian attack in Jordan on 17 July that killed two others. Oil futures rose following the developments, with US West Texas Intermediate (WTI) crude last up 3% to above US$85 per barrel, while international benchmark Brent crude rose 3% to above US$91 per barrel.