US-Israel vs Iran Tensions Remain Concerning, Asian Markets Mostly Down
Jakarta, CNBC Indonesia - Asian markets moved variably at the start of this week amid rising oil prices breaching US$100 following escalating tensions between the United States and Iran. Investors continue monitoring Trump’s decision regarding a potential military strike against Kharg Island in Tehran.
Australia’s S&P/ASX 200 index fell 0.31% at the opening of trading. Japan’s Nikkei 225 index declined 0.12%, whilst the Topix dropped 0.11%. South Korea’s Kospi index rose 0.95%, whilst Kosdaq traded flat. Hong Kong’s Hang Seng index was expected to open higher, with futures contracts at 25,481 level, compared to the index’s last close of 25,465.6.
According to CNBC International, US crude oil traded flat at US$98.7 per barrel at 20:10 ET. Brent crude, the international benchmark, rose 0.48% to US$103.7 per barrel.
President Donald Trump on Friday ordered strikes against Iranian military assets on Kharg Island and warned of further attacks on oil facilities there. Mike Waltz, US Ambassador to the United Nations, reiterated this warning yesterday.
Goldman Sachs estimates that an energy price surge triggered by conflict in Iran could reduce global GDP by approximately 0.3% over the coming year, whilst simultaneously driving general inflation up by around 0.5% to 0.6%. Rising natural gas prices are expected to add inflationary pressure and growth constraints, particularly in Europe and Asia, with risk of greater impact if the Strait of Hormuz remains closed.
Stock futures edged higher as Wall Street attempted to recover from another losing week. Dow Jones Industrial Average futures rose 153 points, or 0.3%. S&P 500 futures rose 0.3% and Nasdaq-100 futures increased 0.3%.
Last Friday, all three major US indices fell. The S&P 500 declined 0.61%, placing it 5% below recent record highs and closing at 6,632.19. The Nasdaq Composite fell 0.93% and closed at 22,105.36. The Dow Jones Industrial Average fell 119.38 points, or 0.26%, and closed at 46,558.47.