Analyst: Gulf conflict will intensify inflation and economic pressure in Asia

金十2026/03/12 03:56

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Golden Ten Data reported on March 12 that Garfield Reynolds, head of the MLIV Asia team, stated that as global crude oil benchmark prices return to triple digits, Asian stock markets are experiencing expanded declines and continued market pressure. This trend may further intensify, as soaring oil prices also signal potential supply shocks in the natural gas and fertilizer sectors, which are particularly significant for many major economies in the region. The sharp and volatile rise in oil prices is the most direct consequence of the de facto closure of the Strait of Hormuz. Although global dependence on oil is not as strong as in the past, the Persian Gulf remains a key hub for global trade. Given the global energy structure's shift towards natural gas in recent years, viewing it as a cleaner alternative fuel for power generation compared to oil and coal, the role of natural gas is becoming increasingly prominent. Natural gas is also crucial for fertilizer producers, especially after the Russia-Ukraine conflict disrupted major sources of natural gas and potash. All of this means that Gulf conflicts may exacerbate inflationary pressures in Asia and drag down economic growth.

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Updates with closing prices By Satoshi Sugiyama TOKYO, Oct 8 (Reuters) - Japanese shares fell more than 1% on Thursday, down for a second consecutive session, as investors paused after recent rallies, wary of the US rate outlook, higher yields and geopolitical tensions. The Nikkei 225 Index .N225 fell 1.42% to close at 69,042.11, while the broader Topix .TOPX slid 1.51% to 4,091.46. "Japanese shares had risen at a rapid pace through yesterday, and profit-taking has since picked up. That selling pressure appears to be continuing today," said Hiroki Takei, strategist at Resona Holdings. Japanese AI-related shares were subdued even after Samsung Electronics 005930.KS, the world's largest memory chipmaker, projected a nearly ninefold jump in third-quarter operating profit from the same period last year. Shares of chipmaker Rohm 6963.T lost 5.19%, the biggest percentage drag in nearly a month, while technology investor SoftBank Group 9984.T shed 4.28% and Tokyo Electron 8035.T dropped 2.48%. Concerns over US monetary policy remained in focus after Federal Reserve minutes released on Wednesday showed most participants signalling another rate hike by year-end. Market participants remained wary of French and Italian debt markets, with rising energy prices and fiscal concerns keeping sentiment fragile. Geopolitical tensions also dampened risk appetite, as increased attacks on shipping in the Gulf and the Strait of Hormuz fuelled concerns over Middle East oil supplies and pushed crude prices higher. Breadth was negative, with 165 decliners in the Nikkei 225 against 56 advancers and four unchanged. The largest percentage losers in the Nikkei were semiconductor silicon wafer supplier Sumco 3436.T, down 5.73%, followed by construction machinery maker Komatsu 6301.T, down 5.52%, and agricultural machinery and equipment maker Kubota Corporation 6326.T, down 5.42%. The largest percentage gainers were cybersecurity software company Trend Micro 4704.T, up 3.89%, followed by IT consulting firm Nomura Research Institute 4307.T, whic

Reuters•2026/10/08 06:54