The Asian markets started the last day trading of the week, 19 April in the sea of Red. This, as marquee indices, primarily in the economically consequential region of South-East Asia started the day on a negative note.
Asian Markets Down In Red
Japan's Nikkei is trading at 37,139.14 points, having lost a massive 940.56 points or 2.47 per cent (0950 IST). Another major index, Hong Kong's Hang Seng lost 1.23 per cent or 201.85 points to be trimmed to 16,184.02. China's Shanghai SE dropped 0.40 per cent to reach 3,062 points. South Korea's KOSPI also slumped 1.91 per cent to slip to 2,591.12 points.
In addition, the Indian indices also started the day on negative. Both Sensex and Nifty have not been having their best time, for the better part of this trading week, after hitting their all-time high marks, in the previous trading week. Sensex is trading at 72,106.84, having lost 382.15 points or 0.53 per cent (1041 IST). Nifty is proceeding at 21,873.95 points, at the loss of 121.90 or 0.55 per cent (1041 IST).
This development could be attributed to the uncertainty looming over the prices of crude oil and the potential threat to the supply chain at large. Crude oil prices which jumped above 3 per cent earlier, have now subsided a little. Nevertheless, the intensity of the hike has only slipped.
Japan's Nikkei is trading at 37,139.14 points, having lost a massive 940.56 points or 2.47 per cent (0950 IST). | Canva
Crude Oil Prices Surge
The Brent crude is currently priced at USD 88.83, having gained 1.97 per cent. Meanwhile, WTI stood at USD 84.47, after a gain in value of 2.10 per cent.
This came to pass, as Israel reportedly reacted and responded Iran's ballistic with an attack on Iranian territory 400 km from capital Tehran.
When we try to detect the other factors in play, barring Japan and the Bank of Japan, which in a historic decision decided to increase their negative interest rate, other central banks, including the one in Korea have maintained their interest rates.
The Brent crude is currently priced at USD 88.83, having gained 1.97 per cent. Meanwhile, WTI stood at USD 84.47, after a gain in value of 2.10 per cent. | File
In addition, the slowdown of the Chinese economy, despite its recent, and unexpected to flourish, has only added to the concerns of stakeholders around the globe. China's role is crucial, not only as an exporter of cheap goods, but also as an important consumer of goods produced in inside and outside the second largest economy of the world.
All these developments, particularly in Middle East could have ripple effects throughout the world. Given the circumstances, it remains to be seen, as to how the American indices react to the chaos.
