Asian stocks markets plunged en masse on the 7th, with international oil prices once soaring nearly $140 a barrel.
There are growing concerns in the asian stocks market that a surge in raw material prices such as oil prices could lead to stagflation, in which inflation rises and a sharp economic slowdown at the same time.
In the morning market that day, Japan’s Nikkei index fell more than 3%, and Hong Kong’s Hang Seng index once fell more than 4%. Korea’s KOSPI index fell more than 2%.
On the Tokyo Stock Exchange, the Nikkei index plunged 3.15% from the previous trading day to 25,166.23, and the Topix index also fell 2.88% as of 11:48 a.m. (Korea Standard Time).
The Hang Seng Index fell 3.43% to 21,153.45.
The KOSPI index fell 2.44 percent to 2,647.28, while the KOSDAQ index fell 2.29 percent to 880.35.
China’s Shanghai Composite Index and Australia’s S&P/ASX 200 Index also fell more than 1 percent, respectively.
Brent crude oil once soared 18% to $139.13 with the start of the market, while West Texas crude oil (WTI) also jumped to $10.50 during the day. Both Brent U and WTI hit their highest prices in more than 13 years, Reuters reported.
The surge in oil prices is attributed to news that the U.S. is considering banning Russian oil imports with European allies and that Iran’s nuclear negotiations are being delayed.
Saudi Arabia’s rise in major crude oil prices and Libya’s decrease in production also served as a negative factor.
International oil prices later returned some of the gains, with Brent crude oil reaching $126.61 (+7.20%) and WTI $124.34 (+7.49%) as of 10:46 a.m. on the 7th.
Gold prices exceeded $2,000 per ounce as demand for safe assets flocked amid rising geopolitical tensions.
Gold rose 2% to $2,005.20 an ounce on the same day, but as of 10:53 a.m., it stood at $2,002.40, Bloomberg reported. Gold prices rose 4.2 percent last week.
