New Delhi [India], March 9 : Asian markets tanked in the opening session on Monday, with Japan's Nikkei and South Korea's KOSPI falling around 7 per cent, after crude oil prices surged sharply amid escalating geopolitical tensions in West Asia.
The sharp fall in regional markets came after crude prices surged more than 25 per cent at the opening, triggering risk-off sentiment across global markets. Crude was trading at USD 115 per barrel at the time of filing this report, raising concerns among investors about inflation and supply disruptions.
Among major Asian indices, Japan's Nikkei 225 index declined by 7 per cent to the 52010 level, reflecting heavy selling pressure in the early session. South Korea's KOSPI index also tanked 7.43 per cent to the 5169 level, as rising oil prices weighed on investor sentiment.
Other Asian markets also witnessed declines during the opening trade. Singapore's Straits Times index lost 2.65 per cent to the 4720 level, while Hong Kong's Hang Seng index fell more than 2.46 per cent to the 25095 level. Meanwhile, Taiwan's weighted index dropped 5.77 per cent to the 31767 level.
The sharp decline across Asian equities follows a strong surge in crude oil prices amid escalating tensions in West Asia.
Brent crude prices surged sharply on Monday, rising by more than 25 per cent amid the ongoing conflict in the region which has made crude prices bullish. During the trading session, crude prices also touched a high of USD 119.45 per barrel, reflecting growing concerns in the global energy market as geopolitical tensions intensify.
West Asia is currently engulfed in a high-intensity, multi-front conflict involving Iran, Israel, and the United States. The crisis escalated following coordinated US-Israeli strikes on Iran, which reportedly resulted in the death of Iran's Supreme Leader, Ayatollah Ali Khamenei.
The developments have significantly raised fears of supply disruptions in global oil markets, which has triggered volatility across financial markets worldwide.
Meanwhile, US markets had already ended last week under pressure. On Friday, the S&P 500 declined by 1.33 per cent to the 6740 level, while the Nasdaq also fell by 1.53 per cent to the 22400 level.
The spike in crude prices and rising geopolitical tensions have increased uncertainty in global financial markets.
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