Asia-Pacific markets fall after US strikes on Iran; oil prices surge, dollar strengthens

Asia-Pacific markets fell sharply in early trade on Monday morning, as oil prices surged and the US dollar reacted, after US strikes against Iran over the weekend.

Japan’s Nikkei 225 tumbled 0.69 per cent while South Korea’s Kospi fell over 1 per cent. Australia’s ASX was down around 0.3 per cent.

Oil prices surged in early trade on Monday, with Brent and the main US crude contract WTI both climbing more than four per cent to hit their highest price since January before paring gains. Brent was last up 2.4 per cent at US$78.83 per barrel and WTI was up 2.5 per cent at US$75.66.

The US dollar index rose 0.3 per cent, strengthening slightly around 0.12 per cent to the Singapore dollar at around S$1.2884, after 8am Singapore time.

US President Donald Trump had made a stunning U-turn from his earlier position that he would keep the United States out of Middle Eastern wars. On Saturday, he ordered a strike against three Iranian nuclear facilities, giving a boost to Israel’s efforts to destroy Iran’s nuclear programme.

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