Asian markets decline amid Gulf conflict concerns

On Monday, Asian stock markets experienced a downturn as investors reacted to a potential prolonged conflict in the Gulf. The Japanese Nikkei index fell by 3.4%, contributing to a monthly loss of nearly 13%. South Korean markets dropped by 3%, while Chinese large-cap stocks declined by 0.2% and the MSCI Asia-Pacific index fell by 1.3%. European index futures, including EUROSTOXX 50 and DAX, also saw a 0.7% decrease, with FTSE futures down 0.4%. Brent crude oil rose by 2% to $114.90 per barrel, marking a monthly increase of nearly 59%, surpassing the levels seen during the 1990 Iraq invasion of Kuwait. U.S. crude reached $101.39, a 1.8% increase, reflecting a 51% monthly rise. Constraints on maritime passage through critical Straits have driven up prices for energy, natural gas, fertilizers, plastics, aluminum, and transportation fuels. Economic analysts warn that these increased costs pose a significant risk of global inflation and recession, particularly impacting energy-dependent Asian economies.