Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
Asia stocks slump as markets brace for energy shock

Asia stocks slump as markets brace for energy shock

Investing.comInvesting.com2026/03/04 01:24
By:Investing.com

SINGAPORE, March 4 (Reuters) - Asian markets skidded on Wednesday, with investors cutting crowded positions in gold and chipmakers on worries a wider Mideast war could deliver an energy shock that raises inflation and delays rate cuts.

Shares in Seoul dived 4% to take two-day losses beyond 11% as fast-money and foreigners bailed out of a market that had soared on memory chipmakers’ vast AI-driven profits.

The selloff dragged the won to a 17-year low. (KS)

Japan’s Nikkei slid 2.5% in a third straight session of losses. Japan and South Korea are major energy importers.

Benchmark Brent crude oil futures are up more than 12% for the week at $81.40 a barrel, though they came off highs after U.S. President Donald Trump ordered an insurance guarantee on Gulf shipping and said the navy may escort oil tankers through the Strait of Hormuz if necessary.

U.S. and Israeli forces have pounded Iran for four days and Iranian drones and missiles have struck Gulf oil refineries and also U.S. embassies in Saudi Arabia and Kuwait.

"It does look like conflict is going to go a little bit longer than what people thought initially. And there’s been escalation, because the war is now broadening out to include allies of the U.S.," said Damien Boey, portfolio strategist at Wilson Asset Management in Sydney.

"Oil infrastructure seems to be under attack ... so people are having to think about what is the duration of all of that."

Gold fell about 4.5% overnight and the Aussie dollar slid 0.8% as traders were cashing out of winning bets to cover losses elsewhere in a volatile week. Early in the Asia session gold steadied at $5,128 an ounce, while U.S. and European futures also tried to stabilise, with S&P 500 futures flat and European futures up 0.8%.

On Wall Street, indexes pared heavier losses but the S&P 500 closed 0.8% lower on fear over potentially prolonged higher oil prices.

"The biggest issue that (investors) are trying to weigh gets back to the intertwining of inflation and interest rates," said Chuck Carlson, CEO at Horizon Investment Services in Hammond, Indiana.

"Are energy prices going to remain elevated for a longer period of time than people thought yesterday, and then does that pass through?"

The euro has slid below $1.16 as investors expect Europe will be hit hard by higher energy costs. Benchmark European gas prices have jumped about 65% in two days.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

Nvidia falls to its lowest valuation in 14 years! "Super bull" Tom Lee calls for bottom fishing, retail investors are buying more as it drops, but Wall Street is divided

After the market opened on Thursday, retail investors went against the trend and bought up Nvidia, with net purchases reaching $111 million in just half an hour, setting a record for the same period. Investors such as Tom Lee have publicly supported the company, with institutions optimistic about strong order backlogs extending to 2028, robust revenue growth, and opportunities created by declining valuations. Meanwhile, institutions like Bernstein and Goldman Sachs have become more cautious about Nvidia's outlook, with concerns focusing on management succession and technological leadership following Jensen Huang's departure.

华尔街见闻•2026/11/13 11:29
Nvidia falls to its lowest valuation in 14 years! "Super bull" Tom Lee calls for bottom fishing, retail investors are buying more as it drops, but Wall Street is divided

From SpaceX to Anthropic, the market has new strategies for dealing with tech giants' IPOs

The market's response strategies to major listings are currently centered around "index inclusion expectations": the new regulations allow mega IPOs to be included in the six major indices within 15 days, triggering concentrated buying by passive funds. Investors are positioning themselves in advance and using options to hedge and amplify buying power. However, Anthropic has a free float of only about 6%; shares available for sale by employees on the first day and privately placed shares with no lock-up period may create supply pressure. On the other hand, index arbitrageurs are facing a rare opportunity.

华尔街见闻•2026/11/13 11:01
From SpaceX to Anthropic, the market has new strategies for dealing with tech giants' IPOs