On Tuesday (31 March, 9:10 AM, GMT+7, Bangkok time), major indices in the Asia Pacific rebounded amid rising oil prices and the ongoing conflict in the Middle East, with South Korean markets showing significant losses.
Investor nerves were heightened after U.S. President Donald Trump intensified warnings against Iran. On Monday, he threatened U.S. attacks on Iran’s power facilities, oil infrastructure, and Kharg Island if the Strait of Hormuz remains blocked and the conflict continues without a peace agreement.
The comments came as the war entered its fifth week and the Trump administration considers the possibility of deploying ground troops to occupy Kharg Island, a key site central to Iran’s oil exports.
Several Asian economies, notably South Korea, Japan, and India, face particular risks from energy market volatility, given their significant dependence on Middle Eastern oil imports. Traders are concerned that rising crude prices will put pressure on corporate earnings and lead to further monetary tightening as policymakers attempt to address inflation.
Japan’s NIKKEI rose by 0.30% to 52,040.89. Australia’s ASX 200 grew by 0.87% to 8,534.60, while South Korea’s KOSPI dropped by 1.61% to 5,192.58.
As for stocks in China, Shanghai’s SSEC increased by 0.45% to 3,940.76. Shenzhen’s SZI climbed by 0.03% to 13,730.25, and Hong Kong’s HSI surged by 0.40% to 24,849.29.
The U.S. stock markets were mixed on Monday as NASDAQ lost 0.73% to 20,794.64. S&P 500 declined by 0.39% to 6,343.72, and the Dow Jones Industrial Average (DJIA) expanded by 0.11% to 45,216.14. VIX slumped by 1.42% to 30.61.
As for commodities, oil prices settled higher on Monday after attacks launched by Yemeni Houthis expanded the Iran conflict to include direct strikes against Israel. Brent crude finished up 0.2%, or 21 cents, at $112.78 per barrel. U.S. West Texas Intermediate settled higher by 3.3%, or $3.24, closing at $102.88.
This morning, Brent fell $1.34, or 1.19%, to $111.44 per barrel, and the WTI decreased $1.08, or 1.05%, to $101.80 per barrel.
Meanwhile, gold futures rose by 1.70% to $4,602.90 per Troy ounce.
