Media365
Hong Kong stocks slumped on Monday, tracking the slide across Asia-Pacific markets, after crude oil crossed US$100 a barrel, as the conflict in the Middle East continues to worsen, stoking inflation and growth concerns in oil-dependent countries.
Over the weekend, Israeli air strikes targeted Iranian oil storage depots and energy infrastructure, further escalating supply disruption fears. Since the war broke out on February 28, Iran has virtually shut the Strait of Hormuz, a chokepoint through which roughly one-fifth of global oil and gas shipments pass.
The Brent oil benchmark surged 18 per cent on Monday to around US$109 a barrel, up from the low to mid-US$70 per barrel before the war.
Asia faces the greatest exposure among energy importers. Nearly 80 to 85 per cent of the oil and liquefied natural gas passing through the strait flowed to Asian markets in 2024, primarily China, India, Japan and South Korea, according to Lazard Geopolitical Advisory.
In Hong Kong, the Hang Seng Index slumped about 2.9 per cent to 25,042.16 as of 9.48am. On the mainland, the CSI 300 Index fell 1.9 per cent and the Shanghai Composite Index slumped by 1.2 per cent.
In Japan, the Nikkei 225 sank nearly 7 per cent. In South Korea, the Kospi shed 8 per cent, after a record 12 per cent fall last Wednesday, the biggest drop in the country’s 46-year market history. In Australia, the S&P/ASX 200 lost 4.3 per cent.
