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.
In Japan, the Nikkei 225 plummeted 1,487.22 points, or 2.8%, to 51,885.85.
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.
In Hong Kong, the Hang Seng dropped 201.09 points, or 0.8%, to 24,750.79.
Yemen’s Houthi movement said Saturday it had fired missiles at Israel, marking its first direct involvement in the U.S.- and Israeli-led war against Iran.
In a post on X, Houthi spokesperson Yahya Saree said the group launched a barrage of ballistic missiles at what it described as sensitive Israeli military sites, in support of Iran and allied Hezbollah forces in Lebanon.
The strike signals a further escalation in a conflict that began with U.S. and Israeli airstrikes on Iranian targets on Feb. 28.
Australia will halve the fuel excise on petrol and diesel for three months to ease rising costs driven by the U.S.-Israeli conflict with Iran, Prime Minister Anthony Albanese said at a press conference in Canberra.
The tax reduction is expected to lower prices at the pump by 26.3 Australian cents per litre (18 cents U.S.), he added.
In other markets
In Shanghai, the CSI 300 sank 10.62 points, or 0.2%, to 4,491.95.
In Korea, the Kospi index backpedaled 161.57 points, or 3%, to 5,277.30.
In Singapore, the Straits Times Index eased 0.92 points to 4,897.26
In Taiwan, the Taiex index stumbled 594.43 points, or 1.8%, to 32,518.16.
In Australia, the ASX removed 55.31 points, or 0.7%, to 8,460.97.
In New Zealand, the NZX 50 tailed off 186.31 points, or 1,4%, to 12,748.92
