Airline stocks led losses in Asia on Monday as Middle East airspace disruptions and airport closures unsettled travel markets, while higher oil prices lifted energy shares amid escalating conflict in Iran.
In Japan, the Nikkei 225 lost 793.03 points, or 1.4%, to 58,057.24
In Hong Kong, the Hang Seng docked 570.69 points, or 2.1%, to 26,059,85.
Singapore Airlines fell more than 5%, pacing sector declines. Japan’s ANA and JAL each dropped over 5%, while Hong Kong’s Cathay Pacific slipped 4.2% lower. Australia’s Qantas and Taiwan’s Eva Air also declined more than 4% as investors weighed higher fuel costs and operational disruptions.
Oil futures also surged as the U.S.-Israel conflict with Iran escalated following the death of Iranian Supreme Leader Ayatollah Ali Khamenei.
U.S. President Donald Trump said Sunday that combat operations in Iran will continue after three U.S. servicepersons were killed.
Energy stocks in Asia advanced on higher crude prices. Woodside Energy in Australia, Inpex in Japan gained as much as 5%, while China National Offshore Oil Corporation in Hong Kong rose more than 3%.
Defense stocks in the region also rose, though more modestly. Japan’s Mitsubishi Heavy Industries, Kawasaki Heavy Industries and IHI rose 0.47% and over 2%, respectively. Singapore’s ST Engineering climbed 3%.
Other major Asian defense stocks were not trading Monday because markets in South Korea were closed for a public holiday.
In other markets
In China, the CSI 300 gained 18.02 points, or 0.4%, to 4,728.67.
In Singapore, the Straits Times Index dropped 104.21 points, or 2.1%, to 4,890.86.
In Korea, markets were shuttered for holiday.
In Taiwan, the Taiex index surrendered 319.40 points, or 0.9%, to 35,095.09.
In Australia, the ASX eked 2.2, to 9,200.89.
In New Zealand, the NZX 50 lost 66.32 points, or 0.5%, to 13,656.85.
