Reported from the source

Quick summary: South Korea’s Kospi index fell 7.24% on Wednesday, extending a significant selloff amid an escalating conflict in the Middle East. This regional market downturn also saw declines in Australia and Japan, while Hong Kong Hang Seng index futures were lower. Oil prices surged, with U.S. crude up 0.87% and Brent up 5.43%, following Iran’s attempt to close the Strait of Hormuz and a warning against transit. U.S. President Donald Trump stated the U.S. Navy would escort tankers if necessary to ensure the free flow of energy. Overnight, U.S. stocks also experienced a volatile session, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closing lower. Investors are also monitoring China’s annual ‘Two Sessions’ parliamentary meeting.

South Korea’s Kospi index declined by 7.24% on Wednesday, building on a steep selloff from the previous day, which marked its worst performance in 19 months. This market reaction is attributed to an escalating war in the Middle East. Across the region, Australia’s S&P/ASX 200 opened down 1.81%. Japan’s Nikkei 225 lost 1.59%, and the Topix declined 1.61%. Hong Kong Hang Seng index futures were at 25,448, below the benchmark’s last close of 25,768.08. The Middle East conflict has intensified, with Iran reportedly attempting to close the Strait of Hormuz. A senior commander from Iran’s Revolutionary Guard stated on Monday that the critical waterway had been shut and warned that any vessel attempting to transit would be targeted. In response, U.S. President Donald Trump announced on Tuesday afternoon that the U.S. Navy would escort tankers through the Strait of Hormuz if required, asserting that the U.S. would ensure the “FREE FLOW of ENERGY to the WORLD.” Oil prices reacted to the widening conflict, with U.S. crude futures rising 0.87% to $75.21 and Brent crude gaining 5.43% to $81.96 per barrel. Overnight in the U.S., markets were rattled by concerns of a prolonged U.S.-Iran conflict. The Dow Jones Industrial Average lost 403.51 points, or 0.83%, closing at 48,501.27. The S&P 500 slipped 0.94% to 6,816.63, and the Nasdaq Composite shed 1.02% to settle at 22,516.69. At their lowest points during the day, the S&P 500 was down 2.5%, the Nasdaq about 2.7%, and the Dow more than 1,200 points (around 2.6%). Investors in the region are also anticipating China’s annual parliamentary meeting, known as the “Two Sessions,” which begins later in the day. Chinese Premier Li Qiang is expected to announce economic targets at the National People’s Congress, opening on Thursday.

Source: www.cnbc.com