Public Markets 8-Hour Briefing
×Market Turmoil in Asia
Asian markets extended losses as the escalating Middle East conflict triggered widespread selling. South Korean stocks plunged in their biggest two-day crash since 2008, with the KOSPI sliding over 8% and trading being halted due to extreme volatility. Foreign investors are fleeing from Asia's hottest markets this year as exuberance in the artificial intelligence trade gives way to fears about an oil-driven inflation shock.
Oil and Energy Markets
Oil prices remain elevated relative to pre-conflict levels as the Middle East conflict continues to disrupt energy markets. Asian LNG prices surged to a three-year peak as the world's largest export plant in Qatar faced shutdowns. Coal prices are also rising as conflict fans concerns about global energy security. In a dramatic shift, oil has become a new haven for investors during wild market moves, while Saudi oil storage fills rapidly as the key export route through the Strait of Hormuz remains effectively closed to shipping.
Currency Volatility
India's rupee weakened to a record low on concerns that rising crude prices could stoke inflation and widen the nation's trade deficit. Indonesia's central bank intervened to protect the rupiah as emerging markets came under pressure following the Iran war. The Taiwan dollar extended losses to its weakest since May, weighed down by heavy foreign outflows spurred by the war in the Middle East. Gold advanced as dip-buyers entered the market despite dollar strength, with haven demand supported by Iran conflict worries.
AI and Technology Sector
Global funds are unwinding the hottest AI trades as oil supply fears mount. PagerDuty's CEO describes AI risks as a double-edged sword while noting that 98% of the company's developers are using AI coding tools. The Australian fund Colonial First State is rethinking its allocation to listed US technology companies as concern about AI spending continues to weigh on shares. Nidec's shares rose as investors bet on a rebound after an investigation into financial scandal found systemic issues with its accounting but not manufacturing operations.