South Korean stocks slip 2.9% as Asian equities fall on oil gains, bonds drop
Escalating US-Iran fighting raises risks of disruptions to oil flows through the Strait of Hormuz
Asian equities plunged as rising oil prices pushed global bond yields to their highest level since 2008, raising fears that tightening monetary policy could dampen economic growth. The MSCI Asia Pacific equities index slipped 1%, with South Korean stocks falling 2.9%. This followed a drop in the S&P 500 Index for a third straight day and a 1.3% decline in the Nasdaq 100 Index.
While the S&P 500 futures remained stable, Hang Seng futures barely changed, Japan's Topix tumbled 1.6%, and Australia's S&P/ASX 200 dropped 1.1%. Dell Technologies initially experienced a rise of around 7% in extended trading after raising its annual sales forecast. Meanwhile, Brent crude oil prices surged, reaching around US$95.30 per barrel, as heightened tensions between the US and Iran increased the risk of further oil disruptions through the Strait of Hormuz.
As oil prices surged, bond yields climbed, prompting traders to speculate that the Federal Reserve would raise interest rates, adding to growing concerns about inflation.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
