Asian stock markets showed early signs of recovery on Monday following sharp losses last week triggered by intensifying hostilities between Israel and Iran. Investor sentiment remains cautious as the risk of prolonged conflict in the Middle East threatens oil supplies, inflation dynamics, and monetary policy outlooks globally. Brent crude prices surged by as much as 5.5 per cent, while safe-haven currencies and assets showed mixed responses. The Japanese yen weakened, and Bloomberg’s dollar index edged slightly higher. Market participants are also watching for upcoming interest rate decisions from major central banks including the US Federal Reserve and the Bank of Japan.Nifty50, Sensex open higher amid global market cautionIndian equity benchmarks Nifty50 and BSE Sensex opened in the green on Monday, reflecting early optimism despite lingering global market concerns. At 9.17 AM, the Nifty50 was trading at 24,790.30, up 72 points or 0.29 per cent, while the BSE Sensex stood at 81,337.74, gaining 219 points or 0.27 per cent. Analysts, however, warn of sustained pressure due to unfavourable international cues. Sector-specific trends are expected to shape market movement through the day, driven by industry-related developments.
Japan: Nikkei recovers amid safe-haven Yen weakness
Japan’s Nikkei 225 rose approximately 0.8 per cent at Monday’s open, partially clawing back losses from Friday’s decline. The Japanese yen- traditionally considered a global safe-haven asset- fell slightly, reflecting investor preference for higher-yielding assets despite ongoing geopolitical risks.
Asia-Pacific: Regional equities stabilize amid oil jitters
The broader Asian equities index ticked up about 0.2 per cent, as investors cautiously bought into the dip. Analysts warned of continued volatility, especially in markets with higher energy dependence. Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin, said: “Markets should be prepared for a prolonged period of uncertainty. Hedging against oil supply-chain disruptions through energy exposure and gold, which may accelerate its structural uptrend, are prudent portfolio strategies.”
Global outlook
Beyond the Middle East, investors are also grappling with additional headwinds including fragile global trade ties, possible tariff hikes under President Trump, the ongoing Russia-Ukraine war, and rising US political unrest amid nationwide protests.
