Asian Markets Decline Amid Middle East Tensions
BANGKOK (AP) — Asian shares and U.S. futures fell on Tuesday as escalating conflicts in the Middle East drove oil prices higher. Houthi attacks on oil facilities in Saudi Arabia’s southern region have intensified tensions between the U.S. ally and Iranian-backed rebels in Yemen.
Market Movements:
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Nikkei 225: After an early rally, Japan’s Nikkei 225 dipped 1.7% to 65,269.33, with major exporters suffering losses due to a strengthening yen.
- Toyota Motor Corp. dropped 4.1%.
- Panasonic Holdings Corp. lost 5.8%.
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Currency Fluctuations: The U.S. dollar fell to 153.73 yen from 154.34, as the yen appreciated in anticipation of potential interventions to stabilize its value.
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Economic Growth: Japan’s economy grew at an annual rate of 1.4% in the April-June quarter, a revision from the previously reported 1.1%. Despite this, overall investment contracted by 0.9%, indicating a potential decline in consumer purchasing power due to rising costs.
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South Korea: The Kospi index fell 0.6% to 6,954.52. Samsung Electronics slipped 0.2% after an initial gain.
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Hong Kong and China: Hong Kong’s Hang Seng index decreased by 0.3% to 25,345.04, while the Shanghai Composite edged up 0.2% to 3,941.44, bolstered by a 25% year-on-year rise in China’s exports for August.
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Australia: The S&P/ASX 200 index closed down 1% at 8,920.80.
Wall Street Performance: On Friday, U.S. markets saw minor declines:
- S&P 500: Down 0.4%
- Dow Jones: Down 0.5%
- Nasdaq: Down 0.3%
Upcoming Economic Reports: Investors are awaiting inflation reports this week. The Producer Price Index (PPI) for August is set to be released on Thursday, followed by the Consumer Price Index (CPI) on Friday, which is closely monitored for its implications on consumer goods prices.
Energy Markets: Brent crude rose 1.4% to $98.40 per barrel, reflecting rising tensions in the Middle East, while benchmark U.S. crude surged 2.6% to $93.88 per barrel. The euro remained stable at $1.1624.
AP Business Writers Chan Ho-him and Yuri Kageyama contributed to this report.
