CANBERA (dpa-AFX) - Asian stock markets are trading mostly lower on Monday, following the broadly negative cues from Wall Street on Friday, as traders remain cautious and concerned about the escalating war in the Middle East and its impact on energy prices, inflation, economic growth and monetary policy. The prevailing uncertainty about the timeline for ending the war is weighing on overall market sentiment. Asian markets closed mostly lower on Friday.
Over the weekend, the U.S. struck military targets near Kharg Island, Iran's main oil export hub, and warned it could expand attacks on energy infrastructure if shipping through the Strait of Hormuz is disrupted.
U.S. Treasury Secretary Scott Bessent said the U.S. Navy may soon escort oil tankers through the Strait of Hormuz, perhaps with an international coalition.
Traders are also keeping a keen eye on the US Fed's latest monetary policy decision later in the week. With the Fed widely expected to leave interest rates unchanged, traders are likely to focus on central bank officials' latest projections for rates and the economy.
With inflationary concerns accelerating across the globe, economists predict that most of the major global economies would hold back on any rate cuts in the near-term.
The Australian stock market is notably lower on Monday, extending the losses in the previous two sessions, following the broadly negative cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is falling below the 8,600.00 level, with weakness across most sectors led by mining stocks. Energy stocks are the only bright spot on surging crude oil prices amid the military conflict in the Middle-East.
Traders remain concerned the spiking crude oil prices and the resultant inflation will lead to back-to-back rate hike as the Reserve Bank of Australia readies to deliver its monetary policy decision on Tuesday.
The benchmark S&P/ASX 200 Index is losing 37.00 points or 0.43 percent to 8,580.10, after hitting a low of 8,563.30 earlier. The broader All Ordinaries Index is down 47.10 points or 0.53 percent to 8,792.00. Australian stocks closed slightly lower on Friday.
Among the major miners, Mineral Resources is declining almost 4 percent, Rio Tinto is losing almost 2 percent, Fortescue is slipping more than 2 percent and BHP Group is edging down 0.5 percent.
Oil stocks are mostly higher. Beach energy is gaining almost 3 percent, Woodside Energy is advancing more than 3 percent and Santos is adding almost 2 percent, while Origin Energy is flat.
Among tech stocks, Afterpay owner Block and WiseTech Global are edging up 0.1 percent each, while Appen is slipping almost 5 percent, Zip is edging down 0.2 percent and Xero is losing more than 1 percent.
Gold miners are lower. Northern Star Resources is declining more than 4 percent, Evolution Mining is losing more than 2 percent, Resolute Mining is sliding more than 5 percent, Newmont is slipping almost 4 percent and Genesis Minerals is tumbling almost 5 percent.
Among the big four banks, Commonwealth Bank and ANZ Banking are edging up 0.1 percent each, while Westpac and National Australia Bank are edging down 0.2 to 0.4 percent each.
In other news, shares in Elixir Energy are jumping almost 17 percent after the release of the final drilling results from the company's Lorelle-3H appraisal well, located in Queensland's Taroom Trough.
In the currency market, the Aussie dollar is trading at $0.701 on Monday.
The Japanese stock market is trading sharply lower on Monday, extending the losses in the previous two sessions, following the broadly negative cues from Wall Street on Friday, with the Nikkei 225 falling well below the 53,150 level, with weakness automakers, exporters and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 53,138.42, down 681.19 points or 1.27 percent, after hitting a low of 53,113.95 earlier. Japanese shares ended significantly lower on Friday.
Market heavyweight SoftBank Group is gaining almost 3 percent, while Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is losing almost 1 percent and Toyota is edging down 0.2 percent.
In the tech space, Advantest is gaining almost 1 percent and Screen Holdings is adding more than 2 percent, while Tokyo Electron is edging down 0.4 percent.
In the banking sector, Sumitomo Mitsui Financial is edging down 0.2 percent, while Mitsubishi UFJ Financial is declining more than 1 percent and Mizuho Financial is losing almost 1 percent.
The major exporters are lower. Panasonic, Mitsubishi Electric and Sony are losing almost 1 percent each, while Canon is flat.
Among the other major losers, Sumitomo Metal Mining is declining almost 4 percent, while Nissan Motor, Tokyo Electric Power and Ebara are losing more than 3 percent each. TDK, Chugai Pharmaceutical and Ryohin Keikaku are down almost 3 percent each.
Conversely, Denka is advancing almost 5 percent, while Osaka Gas and NH Foods are gaining almost 3 percent each.
In the currency market, the U.S. dollar is trading in the lower 159 yen-range on Monday.
Elsewhere in Asia, are Indonesia is down 2.2 percent. New Zealand, China, Malaysia and South Korea are lower by between 0.1 and 0.6 percent each. Hong Kong, Singapore and Taiwan are higher by between 0.1 and 0.6 percent each.
On Wall Street, stocks rebounded in early trading on Friday but showed a notable move back to the downside as the day progressed following the sell-off seen during Thursday's session. The major averages pulled back well off their early highs and into negative territory.
The major averages added to the steep losses posted in the previous session, falling to new three-month closing lows. The Nasdaq slid 206.62 points or 0.9 percent to 22,105.36, the S&P 500 fell 10.43 points or 0.6 percent to 6,632.19 and the Dow dipped 119.38 points or 0.3 percent to 46,558.47.
The major European markets also moved to the downside on the day. While the French CAC 40 Index slid by 0.9 percent, the German DAX Index decreased by 0.6 percent and the U.K.'s FTSE 100 Index fell by 0.4 percent.
Crude oil prices again showed a substantial move to the upside on Friday as uncertainty prevails about the timeline for ending the war. West Texas Intermediate crude for April delivery was up $3.35 or 3.50 percent at $98.08 per barrel.
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