Kamal Ghorui
Asian equities traded in green on Monday, as investors remained cautious with the Middle East war entering its sixth week and tensions continuing to rise. While Japan’s Nikkei and South Korean Kospi jumped in green, Australia, Hong Kong and Shanghai remained shut.Nikkei jumped, 1.65% to 54,001.64, up 878 points. Kospi also maintained the momentum, rising 1.28% or 69 points to 5,446, around 8:50 am IST. Several key markets remained shut, with Australia closed for Easter and both Hong Kong and Shanghai observing a traditional Chinese holiday. Market sentiment continues to be shaped by developments in the Middle East. At the same time, the Tuesday deadline set by US President Donald Trump for Iran to open the Strait of Hormuz is drawing closer, with some analysts warning of a possible escalation in hostilities beyond that point. Over the weekend, Trump renewed threats against Iran as bombing in the region persisted. Meanwhile, the United States confirmed the rescue of two aviators after their fighter jet was brought down by Iran. Oil prices remained at the centre of investor attention. US benchmark crude rose by 38 cents to $111.92 a barrel, while Brent crude increased by $1.71 to $110.74 a barrel. Although energy markets did not trade on Friday, recent sessions have seen prices climb on concerns that the conflict could be prolonged. Despite importing only a limited share of its oil from the Persian Gulf, the United States is not insulated from price movements, as oil is traded globally. Countries such as Japan, which depend heavily on imported energy, are particularly sensitive to any disruption in access through the Strait of Hormuz. “As we kick off the first full trading week of April, the word uncertainty is paramount. Last year it was centered on the impact of ‘Liberation Day’ tariffs, this year it’s uncertainty surrounding the ongoing Iranian War,” said Jay Woods, analyst at Freedom Capital Markets in New York. US markets and some European markets were also closed at the end of last week. Meanwhile, in currency trading, the US dollar edged up marginally to 159.65 yen from 159.63, while the euro slipped to $1.1509 from $1.1517.
