Asian markets opened lower on Thursday, weighed down by escalating geopolitical concerns and rising oil prices. Japan, South Korea, and Australia saw broad declines, with Australia's S&P/ASX 200 dropping over 1%, reflecting heightened investor caution amid global uncertainty.
Oil Rises on Geopolitical Fears
Crude oil prices climbed for the second consecutive day, with Brent futures surpassing $90 per barrel. Fears of prolonged instability in the Middle East, linked to rising regional tensions, overshadowed efforts by major economies to stabilize markets through strategic reserve releases.
Global Risk Sentiment Deteriorates
U.S. equity futures declined, with S&P 500 futures down nearly 0.9%, indicating weakening risk appetite. Credit markets also showed stress, as yield spreads widened and liquidity tightened in certain high-yield segments.
- Nikkei 225 futures fell 0.7%
- Hang Seng Index futures dropped 0.8%
- Australia’s S&P/ASX 200 tumbled 1.1%
- Brent crude rose 2.3% to $90.40 a barrel
Market analysts warn that near-term volatility is likely to persist, with investors closely monitoring developments that could impact global energy supply chains and inflation trajectories.