Summary: Asian shares fell as investors anticipate an invasion by Israel in the Gaza Strip. Israeli forces have positioned themselves along the border, preparing for a broad campaign to dismantle the militant group Hamas. The conflict has caused uncertainty in the global economic outlook and has jolted oil markets. Oil prices have surged, and there are fears that the violence could disrupt the flow of petroleum. In response to the tensions, Tokyo’s Nikkei 225 sank 1.9% and the Hang Seng in Hong Kong lost 0.5%.
Shares in Asia dropped as investors braced themselves for an invasion by Israel in the Gaza Strip. Israeli forces have positioned themselves along the border, ready for a broad campaign to dismantle the militant group Hamas. The conflict has created uncertainty in the global economic outlook and has had a notable impact on oil markets. While the Gaza region is not a major oil producer, there are concerns that the violence could spill into the politics surrounding the crude market, potentially leading to disruptions in petroleum flow with wide-ranging ramifications for various industries.
On Friday, U.S. crude oil jumped $4.78 to settle at $87.69 per barrel, and Brent crude climbed $4.89 to $90.89 per barrel. In Asian share trading, Tokyo’s Nikkei 225 sank 1.9% to 31,695.15 and the Hang Seng in Hong Kong lost 0.5% to 17,728.35. The Shanghai Composite index was 0.4% lower, and South Korea’s Kospi declined 1%.
The conflict in Gaza has sparked worries and uncertainty in the markets, which often results in investors seeking safer investment options during times of stress. As a result, Treasury yields fell, with the 10-year Treasury yield dropping to 4.63% from 4.70%. Furthermore, the possibility of an invasion has led to speculation that the Federal Reserve may halt its campaign of interest rate hikes. Meanwhile, JPMorgan Chase and Wells Fargo reported stronger-than-expected profits for the summer quarter, providing some support to Wall Street. Despite the positive news from these banking giants, there are concerns about the overall global situation, with JPMorgan Chase CEO Jamie Dimon expressing worries that this may be one of the most dangerous times the world has seen in decades.
Tags: Asian shares, Israel, Gaza invasion, oil markets, Treasury yields, JPMorgan Chase, Wells Fargo, global economic outlook