Asian Shares Tumble After Oil Price Surge

(RTTNews) - Asian stocks tumbled on Thursday as the price of a barrel of Brent crude oil, the international standard, briefly topped $100 a barrel on supply concerns following Iranian attacks on commercial shipping around the Strait of Hormuz.

As the U.S. campaign of airstrikes in Iran entered its 13th day, there were no signs the conflict was subsiding.

Iran has targeted oil fields and refineries in Gulf Arab nations and effectively stopped cargo traffic through the narrow Strait of Hormuz in a bid to exert pressure on the United States and Isreal to end the war.

Oil prices last traded up more than 4 percent in Asian trade, the dollar rose and Treasury yields increased amid tanker attacks, strikes across Lebanon, and growing fears of prolonged economic disruption. Gold prices were little changed at $5,178 an ounce.

China's Shanghai Composite index slipped 0.10 percent to 4,129.10 after a volatile session. Hong Kong's Hang Seng index dipped 0.70 percent to 25,716.76 due to ongoing hostilities in the Middle East.

Japanese stocks ended lower as oil and gas price volatility fueled inflation expectations. The International Energy Agency's decision to conduct its largest stockpile release failed to ease market jitters over supply disruptions caused by the shutdown of the Strait of Hormuz.

The Nikkei average ended down 1.04 percent at 54,452.96, with rate-sensitive real estate stocks and financials leading losses. The broader Topix index closed 1.32 percent lower at 3,649.85.

Seoul stocks ended slightly lower, with the Kospi index falling 0.48 percent to 5,583.25 as tensions continued to persist around the critical waterway south of Iran.

Australian markets fell sharply after a survey showed consumer inflation expectations rose to the highest level since July 2023 in March following the RBA's 25 bps rate hike in February.

As Iran uncertainty mounts, Reserve Bank of Australia deputy governor Andrew Hauser said earlier this week that the jump in the oil price will push inflation above the 4.2 percent the central bank has forecast.

The benchmark S&P/ASX 200 fell 1.31 percent to 8,629 as investors braced for the Reserve Bank of Australia's policy meeting on March 17. The broader All Ordinaries index settled 1.40 percent lower at 8,851.40.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.71 percent to 13,199.29, reversing the prior session's rally.

Overnight, U.S. stocks ended mixed for a second straight session as another increase in oil prices on growing rhetoric about the Iran war and worries about a protracted confrontation overshadowed tame inflation data.

Treasuries slid across the curve despite CPI inflation rising 2.4 percent annually in February, in line with expectations.

The tech-heavy Nasdaq Composite inched up marginally while the S&P 500 ended flat with a negative bias and the Dow dipped 0.6 percent.