Public Markets 3d Briefing
×Middle East Conflict Roils Global Markets
Asian stocks bloomberg.com plunged the most in nearly a year, led by the biggest South Korean crash since the global financial crisis in 2008. Emerging-market equities bloomberg.com are set for the biggest weekly decline since the height of the pandemic in 2020, as overseas investors pull money out of emerging Asian stocks at the fastest pace in nearly four years.
Oil prices wsj.com retreated while Asian equities were mixed at the end of a volatile week as investor sentiment continued to be undermined by the conflict in the Middle East. Brent crude bloomberg.com could cross the $100 threshold if the Strait of Hormuz experiences several weeks of disruption, according to Goldman Sachs. Aluminum bloomberg.com was set to post its biggest weekly gain since September 2024 as the deepening conflict in the Middle East snarled shipments from the region.
Currency and Central Bank Responses
Turkey bloomberg.com has spent $12 billion, equal to roughly 15% of its foreign-currency reserves, to keep the lira stable during a week of global market volatility triggered by the war in Iran. Malaysia bloomberg.com's central bank will likely stand pat on borrowing costs, exercising caution as the Iran war unleashes a fresh wave of uncertainty on the global economy.
Singapore dollar wsj.com strengthens against its US counterpart in the Asian session on possible position adjustments. Canadian dollar bloomberg.com has become a top pick in the $9.5-trillion-a-day foreign exchange market due to its link to oil prices as the war in the Middle East grinds on.
Energy and Supply Chain Disruptions
Asian economies ft.com brace for Iran war energy shock as some of the world's biggest fuel importers rush to secure oil and gas supplies. Russia's flagship crude blend bloomberg.com is still trading at deep discounts despite a global oil rally driven by the growing escalation in the Middle East.
US-sanctioned Russian liquefied natural gas vessels bloomberg.com are redirecting away from the Mediterranean Sea after one was allegedly attacked by Ukrainian drone boats. Qatar bloomberg.com is offering at least two liquefied natural gas tankers that it controls for lease, as the country's massive export facility in the Persian Gulf remains shut due to the ongoing war.
Investment and Market Strategy Shifts
Morgan Stanley bloomberg.com is adopting a more cautious stance on Asian equities, trimming its India exposure on concerns that the Iran war may disrupt supply chains. Morgan Stanley bloomberg.com downgrade deals a fresh blow to Indian stocks as foreigners have rushed to sell shares amid the Middle East conflict.
TA Associates bloomberg.com is considering selling bubble-tea maker Gong cha, according to people with knowledge of the matter. KKR bloomberg.com will acquire a 348 billion won ($235 stake in South Korean renewable energy firm SK Eternix Co., stepping up its climate and environmental investments.
Safe Haven Assets Under Pressure
Traditional safe havens bloomberg.com — Treasuries, the yen, the Swiss franc, and gold — have offered investors no refuge this week. Gold bloomberg.com recaptured some losses but remained on track for the first weekly decline in more than a month, pressured by a stronger US dollar and inflationary risks tied to the ongoing war in the Middle East.
Gold investing.com holds losses as strong dollar outweighs haven demand; set for weekly drop. Geopolitics and the global macro backdrop wsj.com remain supportive of gold, State Street Investment Management said.
Corporate and Industry Impacts
Toyota supplier Denso ft.com makes $8 billion bid for Japanese chipmaker Rohm as Tokyo seeks to consolidate sector to compete against China. Taiwan's Foxconn finance.yahoo.com says everyone will feel impact of prolonged Iran conflict.
Cathay Pacific Airways Ltd. and Orient Overseas International Ltd. bloomberg.com are investor highlights next week as escalating US-Iran tensions threaten to upend regional operations. Sushiro operator Food & Life Companies Ltd. bloomberg.com fell the most in more than three months after Chinese authorities inspected one of its Sushiro outlets in Beijing over suspected food contamination.
Regional Market Closures and Volatility
Dubai stocks bloomberg.com slumped the most since 2022 after UAE markets reopen, tumbling as trading resumed on Wednesday following a two-day closure aimed at protecting the Gulf state's key markets. Korean stocks bloomberg.com surge by most since 2008 in roller coaster week, bouncing back after their biggest one-day slump on record.
KOSPI investing.com falls 12% in a single day amid "massive" foreign investor liquidation. European stocks investing.com close lower; Wizz Air issues profit warning as the conflict continues to disrupt aviation and travel sectors.