Asian markets fall, crude oil spikes nearly 3%; Nifty retreats from day’s high

Asian equity markets traded under pressure on Friday, with major regional indices witnessing sharp declines amid rising concerns over global risk sentiment and a spike in crude oil prices.

Japan’s Nikkei 225 fell nearly 2.7%, while Hong Kong’s Hang Seng declined over 1.8%. Taiwan Weighted slipped 1.4%, Shanghai Composite was down over 1%, and Singapore’s Straits Times also traded in the red. South Korea’s KOSPI emerged as one of the worst performers in the region, plunging more than 6%.

The weakness in global equities also weighed on Indian benchmarks, with the Nifty 50 giving up a part of its early gains after climbing close to the 23,850 mark during the session.

At around midday, the Nifty 50 was trading near 23,734, up marginally by 44 points, after retreating sharply from the day’s high of 23,839. The intraday chart indicated profit booking at higher levels amid weak global cues.

Investor sentiment remained cautious as crude oil prices surged above the $103 per barrel mark, rising nearly 3% during the session. The sharp jump in oil prices triggered concerns around inflationary pressures, input cost escalation and the potential impact on global economic growth.

Higher crude prices are particularly significant for India, which is one of the world’s largest importers of crude oil. A sustained rise in energy prices could put pressure on the country’s trade deficit, inflation trajectory and fiscal balance, analysts said.

Market participants were also closely monitoring global geopolitical developments and their potential impact on commodity prices and international trade flows. The rise in crude oil prices led to weakness across several Asian markets, especially in sectors sensitive to energy costs and global demand.

Back home, the Nifty managed to stay in positive territory despite the global weakness, supported by selective buying in financial and heavyweight stocks. However, broader market sentiment remained cautious with volatility increasing during intraday trade.

Analysts said investors may continue to remain stock-specific in the near term while closely tracking crude oil movement, global bond yields, foreign institutional investor activity and further developments in international markets.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.