The Tokyo Tower stands amid buildings at dusk in Tokyo, Japan.
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Asia-Pacific markets fell sharply on Monday as the Middle East war entered its fifth week, with the conflict escalating despite efforts aimed at finding a diplomatic solution.
The benchmark Kospi plunged over 5%, while the small-cap Kosdaq was 3.97% lower.
Japan’s Nikkei 225 fell 3.97%, while the Topix lost 3.9%. Bank of Japan policymakers discussed the need for further rate hikes at their March meeting, as rising oil prices linked to the Middle East conflict add to inflation pressures. One member signaled that tightening may need to be accelerated, according to a summary of opinions released Monday.
There is a risk the BOJ might unintentionally fall behind the curve, one policymaker noted, as second-round effects and a rise in underlying inflation stemming from overseas developments are more likely to emerge.
Australia’s S&P/ASX 200 was 1.46% lower.
Hong Kong’s Hang Seng index lost 1.52%, while the CSI 300 was down 0.77%.
Yemen’s Houthi movement said Saturday it had fired missiles at Israel, marking its first direct involvement in the U.S.- and Israeli-led war against Iran.
In a post on X, Houthi spokesperson Yahya Saree said the group launched a barrage of ballistic missiles at what it described as sensitive Israeli military sites, in support of Iran and allied Hezbollah forces in Lebanon.
The strike signals a further escalation in a conflict that began with U.S. and Israeli airstrikes on Iranian targets on Feb. 28.
Oil prices were higher in early Asia trading hours. West Texas Intermediate crude futures were up 2.58% at $102.19 per barrel.
In the U.S., futures tied to the Dow Jones Industrial Average dropped 253 points, or 0.6%. S&P 500 futures and Nasdaq 100 futures lost 0.5% each.
Last Friday, the Dow Jones Industrial Average tumbled and fell into correction territory. The 30-stock Dow fell 793.47 points, or 1.73%, to close at 45,166.64. The S&P 500 lost 1.67% and ended the session at a seven-month low of 6,368.85. The Nasdaq Composite dropped 2.15% and settled at 20,948.36.
The broad market index notched its fifth straight weekly decline, dropping 2.1% in the period. The tech-heavy Nasdaq slid 3.2% week to date, while the blue-chip Dow retreated 0.9% for the week.
— CNBC’s Sean Conlon and Lisa Kailai Han contributed to this report.