The biggest disruption to global air transport since the coronavirus pandemic continued on March 1, with thousands of flights affected and busy Middle East hubs such as Dubai and Doha closed, as Iran lashed out after the U.S. and Israeli attacks.
Justin Tallis | AFP | Getty Images
Airlines stocks led losses in Asian markets on Monday as airspace disruptions and airport closures in the Middle East destabilized the travel market, while higher oil prices boosted energy stocks amid the escalating Iran conflict.
singapore airlines fell more than 5%, continuing the sector’s pace of decline. Japanese ANA and Japan Airlines Each fell more than 5%, with Hong Kong’s Cathay Pacific dropping 4.2%. australian Qantas Airways and Taiwan’s EVA Air Shares fell more than 4% as investors factored in higher fuel costs and disruptions to operations.
Oil futures also soared as the conflict between the US and Israel intensified following the death of Iran’s supreme leader Ayatollah Khamenei.
US President Donald Trump said Sunday that combat operations in Iran will continue after three US service members were killed.
Crude oil futures rose more than 8%. west texas intermediate Futures last traded at $72.92, while brent crude oil It was $79.79 per barrel. Gold futures rose 2.43% as investors flocked to the global safe-haven asset.
Asian energy stocks rose on the back of rising oil prices. woodside energy In Australia, INPEX Japan rose as much as 5%, while Hong Kong’s China National Offshore Petroleum Corporation rose more than 3%.
Defense stocks in the region also rose more modestly. Japanese Mitsubishi Heavy Industries, Kawasaki Heavy Industries and IHI They rose 0.47% and more than 2%, respectively. Singapore’s ST Engineering rose 3%.
Other major Asian defense stocks were not trading on Monday as South Korean markets were closed for a public holiday.
Japanese Nikkei Stock Average fell 1.35% to 58,057.24, narrowing its previous decline, while TOPIX fell 1.02% to 3,898.42.
Hong Kong Hang Seng Index fell 2.14% to close at 26,059.85, leading the decline in Asia, while mainland China’s CSI 300 index rose 0.38% to close at 4,728.67, bucking the broader downward trend.
Australia’s S&P/ASX 200 Index edged up to 9,200.9, with gains in the oil and gold mining sector offsetting losses.
Stock futures fell in overnight trading following a weekend strike in Iran.
Futures prices for the Dow Jones Industrial Average fell more than 600 points, or 1.28%. S&P 500 futures fell 1.32%, and Nasdaq 100 futures fell more than 1.71%.
