2023-10-23 11:50:01
Asian stocks all closed lower
(AFP, Hong Kong, 23rd) Asian stock markets continued last week’s selling pressure and closed lower today due to concerns about the expansion of conflicts in the Middle East and that U.S. interest rates will remain high for longer than expected.
Still, oil prices fell as Israel delayed a ground offensive against the Palestinian Islamist group Hamas in Gaza as diplomats sought to secure the release of more hostages, in what some believed could be a change in strategy.
Hamas launched a surprise attack on Israel on October 7, and Israel continued to bomb Gaza for several weeks, triggering the Israeli-Palestinian conflict and causing risk assets to plummet. The panic index VIX hit its highest point since March.
Israel warned that Hezbollah could draw Lebanon into the conflict after Iran-backed Hezbollah launched another anti-tank missile attack on Israel from Lebanon yesterday.
While concerns remain that other countries, including Iran, could be drawn into the regional war, Israel’s decision to delay a ground offensive after weeks of bombings sent crude prices lower. Jun Rong Yeap, market strategist at IG Asia, said that oil prices are “taking a breather while the international community focuses on humanitarian aid and securing the release of hostages, which means that the Israeli ground invasion can be postponed.”
Stocks in Tokyo, Sydney, Seoul, Shanghai, Singapore, Taipei, Manila and Jakarta all ended lower. The Hong Kong stock market was closed for one day due to a national holiday.
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