Asia-Pacific markets fell sharply on Monday as the Middle East war entered its fifth week, with the conflict escalating despite efforts aimed at finding a diplomatic solution.
The benchmark Kospi
plunged over 5%, before paring losses to close 2.97% lower at 5,277.3 while the small-cap Kosdaq fell around 3% to 1,107.05.
Japan’s Nikkei 225 fell 2.79% to 51,885.85 while the Topix lost 2.94% to 3,542.34. Bank of Japan policymakers discussed the need for further rate hikes at their March meeting, as rising oil prices linked to the Middle East conflict add to inflation pressures. One member signaled that tightening may need to be accelerated, according to a summary of opinions released Monday.
There is a risk the BOJ might unintentionally fall behind the curve, one policymaker noted, as second-round effects and a rise in underlying inflation stemming from overseas developments are more likely to emerge.
Australia’s S&P/ASX 200 was 0.65% lower, closing at 8,461.
Hong Kong’s Hang Seng index lost over 1%, while the CSI 300 was down 0.24% to 4,491.95.
