Asian Markets Sentiment Deteriorates On Oil Price Rise Resumption, Currencies Fall

Arjun Pandit
29 Jun, 2022
New York City

Across Asia, indexes closed lower following weak markets in the U.S. and weaker sentiment in the region. 

Investors have been on the defensive after a 3-day rally in crude oil prices stoked fears of another hike in inflation with no end in sight for the war in Ukraine. 

Turkey agreed to let Finland and Sweden join the military alliance NATO, Secretary General Jens Stoltenberg said. 

The expansion of NATO is only going to escalate hostilities with Russia and prolong the war in Ukraine and further fuel energy and food inflation. 

The Nikkei 225 index fell 0.9% to 26,804.60, the Hang Seng index declined 1.9% to 21,996.89, and the Shanghai index dropped 1.4% to 3,361.52. 

Tech stocks led the decliners in Tokyo trading following 3% decline in tech heavy Nasdaq index in overnight trading in New York. 

Softbank, Advantest, and Tokyo Electron dropped between 1% and 3%. 

Tokyo Electric Power soared 5.3% to 579.0 yen after Prime Minister Fumio Kishida urged to increase the use of nuclear power to meet the rising demand from the latest heat wave engulfing the capital city. 

The sentiment in the region was weak on the widening perception that a global economic slowdown may not be averted. 

The resurgent dollar also knocked the yen to its 22-year low of 136.52 and the Korean won to 1,296.97. 

The Kospi average dropped 1.82% to 2,377.99 after the latest consumer sentiment survey showed a sharp decline in consumer confidence elevated food and energy price inflation.  

Rupee traded down 0.2% to 78,95 against one U.S. dollar extending this year's loss to 5.8%. 

The Sensex index declined 150.48 or 0.3% to 53,026.97 and the Nifty index fell 51.10 or 0.3% to 15,799.10.