
APAC starts the week in the red; Nikkei plunges 4.8%

Asian-Pacific equity markets opened the week in negative territory as investors retreated amid escalating geopolitical tensions and rising oil prices. By 11:50 am AEDT (12:50 am GMT), Japan’s benchmark Nikkei 225 led the declines, tumbling 4.8%. Australia’s S&P/ASX 200 fell 1.3%, while South Korea’s KOSPI 200 dropped 4.3%. The sell-off follows an escalation in the Middle East conflict after Yemen’s Houthis announced they had launched ballistic missile strikes targeting Israeli military sites. Houthi spokesperson Yahya Saree said the attacks were carried out in support of Iran and allied Hezbollah forces, marking the group’s first direct involvement in the war. The development has intensified concerns that the conflict could widen further, disrupting global energy supplies and trade routes. Oil prices responded sharply in early Asian trading, with Brent crude and West Texas Intermediate futures both rising 2.8% to US$108.27 and $102.31 per barrel, respectively. The surge in energy prices has added to inflation concerns globally, complicating the outlook for central banks. In Japan, a summary of opinions from the Bank of Japan indicated policymakers are increasingly debating the need for further interest rate hikes







