Asian stock markets opened sharply lower on Monday after crude oil prices surged amid escalating geopolitical tensions in West Asia.
Major indices across the region registered steep losses during early trading as rising energy prices triggered a risk-off sentiment among investors.
Japan’s Nikkei 225 index fell about 7 per cent to around the 52,010 level, reflecting heavy selling pressure in the opening session. South Korea’s KOSPI index also declined 7.43 per cent to about 5,169.
Other markets across the region recorded declines. Singapore’s Straits Times index slipped 2.65 per cent to around 4,720, while Hong Kong’s Hang Seng index dropped more than 2.46 per cent to about 25,095. Taiwan’s weighted index also fell 5.77 per cent to around 31,767.
The fall in regional equities followed a sharp surge in global crude oil prices. Brent crude rose more than 25 per cent during early trading, with prices climbing to around $115 per barrel and briefly touching a high of $119.45.
The spike in oil prices comes amid escalating conflict in West Asia involving Iran, Israel and the United States. The crisis intensified after coordinated strikes reportedly targeted Iranian leadership.
Rising geopolitical tensions have heightened concerns about potential disruptions to global oil supplies, increasing volatility in financial markets.
United States markets had already ended the previous week lower. The S&P 500 declined 1.33 per cent to around 6,740 on Friday, while the Nasdaq dropped 1.53 per cent to about 22,400.
Analysts say the surge in oil prices and growing geopolitical risks have increased uncertainty across global financial markets.
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