Most Asian stock markets fell as a volatile cocktail of geopolitical uncertainty in the Middle East , rising inflationary pressures and a new surge in oil prices weighed on investor sentiment. Cautiousness dominated the region’s markets, with fund managers selectively booking profits and reducing their exposure to high-value stocks, fearing that rising government bond yields would delay central banks’ easing of monetary policy.
In Japan, the Nikkei 225 index was the biggest loser, falling 2.15% to 67,734 , down from a recent high of 69,111. The move abruptly ended an impressive five-session rally that had seen the index gain 5.5% . The broader MSCI Asia-Pacific index outside Japan also fell, dragged down by risk aversion.
In Chinese markets, the pressures were equally visible. In Shanghai, the Shanghai Composite fell 0.50% to 3,962.88 points , while the SZSE Component on the Shenzhen Stock Exchange recorded deeper losses, closing -1.09% at 14,543.45 points . In Hong Kong, the Hang Seng index slipped 0.85% to 25,237 points , weighed down by high-tech stocks. A similar negative pattern prevailed in Seoul, where the Kospi index fell 0.86% to 6,918.01 points , while in India the Nifty 50 fell 0.27% to 24,221.55 points . The Australian stock market appeared more resilient, with the ASX index recording only marginal losses of 0.09% at 9,081 points .
At the sector level, the technology sector was the focus of liquidations, especially in categories related to semiconductors and artificial intelligence. A typical example was Tokyo Electron , which recorded a 4.3% drop , while SoftBank Group managed to diversify by recording a 2.7% rise , reflecting a mixed picture for groups with exposure to innovation. In mainland China, losses in technology stocks were broad, with the CSI Artificial Intelligence index falling by 2.1% and the 5G Communication sector index losing 1.8% .
On the other hand, the turmoil created significant opportunities for other sectors, with shipping and energy recording strong gains. Shipping stocks soared as problems in international shipping led investors to discount higher freight rates . The shipping index was the absolute star on the Tokyo Stock Exchange, jumping 4.1% and taking first place among 33 sector indices. At the same time, the strengthening of crude oil gave a boost to oil companies due to expectations of increased profit margins, with PetroChina , a typical example, gaining more than 2% .
The attention of the international investment community remains focused on developments in the Middle East and the fluctuation of energy costs . The main concern of analysts is that a prolonged maintenance of high oil prices will fuel structural inflation again, limiting the ability of central banks to proceed with interest rate cuts and keeping borrowing costs at levels that slow down global economic growth.
