Asian markets witnessed a rocky start at the beginning of October as rising tensions in the Middle East region continued influencing investor sentiments, signalling mixed trading sessions. Hong Kong stock markets fell by 1% in its first hour of trade, whereas Australia’s S&P/ASX 200 index lost 0.46%. However, Hong Kong shares rose by 2%, resuming a rally after slipping, and other stock markets, like the Nikkei index, inched up by 0.41%, and South Korea’s Kospi and Kosdaq were rallying at 0.19% and 0.74% higher respectively.
This is the first time Asian markets witnessed volatility after the Federal Reserve announced the interest rate cuts.
The impact on Chinese markets is yet to be seen as the markets are shut for the week and will reopen on October 8th, which can be assumed to be positive. As AllianzGI mentioned, “In China, the property situation seems to have stabilised, which may well act as a catalyst for stocks, many of which are currently very attractively priced.” They further mentioned that global investors are ready to bet again on China’s economic future.
How Is Wall Street Reacting To Ongoing Tensions In Middle East?
Middle East crisis has wreaked havoc on the US stock market, with the Dow Jones Industrial Average falling to 42,011. 59 witnessing a fall of 184.93 points or 0.44%. Meanwhile, the S&P 500 fell to 5,699.94, losing 0.17%, and the Nasdaq Composite closed down by 0.04% at 17,918.48. But there was a rally of over 3% in Nvidia. Moreover, US crude futures rose by 5% overnight as investors anticipated Israel might target Iran’s oil industry in response to Tehran’s missile attack.
