Asian shares decline on Wednesday

Asian stock markets bore the brunt of the sell-off, mirroring the previous day’s decline on Wall Street. Japan’s Nikkei 225 index plunged by two per cent, while South Korea’s KOSPI dropped 0.6 per cent.

However, Hong Kong’s Hang Seng index bucked the trend, surging six per cent as Beijing’s stimulus measures continued to bolster sentiment.

Safe-haven assets, such as US Treasury bonds and gold, saw increased demand. US Treasury yields remained depressed in Asian trading hours, while gold prices hovered near all-time highs. The dollar also strengthened against the euro, reaching its highest level in three weeks.

Oil prices climbed on the prospect of supply disruptions. Brent crude futures rose by 1.5 per cent to $74.66 per barrel, extending gains from the previous day. US WTI crude futures increased by 1.7 per cent to $71 per barrel. Analysts cautioned that an Israeli strike on Iranian oil fields could further drive up prices.

Gold prices, however, retreated slightly, falling 0.3 per cent to $2,654.27 per ounce after hitting a near-record high in the previous session.

The global financial landscape remains uncertain as the situation between Israel and Iran evolves. Any escalation in tensions could lead to further market volatility.

Attribution: Reuters

Subediting: M. S. Salama