S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- Asian stock markets start the week on a cautious note amid renewed Middle East tensions.
- The exchange of attacks between the US and Iran has pushed oil prices higher.
- Hawkish Fed bets accelerate as Fed’s Warsh reiterates high inflation risks.
Asian equity markets remain under pressure at the start of the week, as risk sentiment turns sour due to renewed tensions in the Middle East and a sharp increase in Federal Reserve (Fed) interest rate hike expectations.
At the time of writing, Nikkei225 is down 0.25% to near 66,250, Hang Seng decline 0.36% slightly below 22,500. However, Chinese stock markets are positive upto 0.7%, and KOSPI rises 0.46% at around 6,820.
Tensions between the United States (US) and Iran have revived as Iran retaliates by attacking US bases in Jordan after Washington struck Iranian rocket launchers that were preparing to send mines into the Strait of Hormuz, Bloomberg reported.
This has resulted in a sharp increase in oil prices. At press time, the WTI Oil price trades 2.5% higher to near $84.85.
Higher oil prices bode poorly for various Asian economies, given their significant reliance on oil imports to meet their energy needs.
Meanwhile, remarks from Fed Chair Kevin Warsh at the Jackson Hole Symposium that the central bank is committed to bringing price pressures down have lifted hawkish Fed bets.
According to the CME FedWatch tool, the odds of the Fed leaving interest rates again in the September meeting have diminished to 39.4% from almost 60% seen a week ago.
