BAKU, Azerbaijan, March 9. Ongoing escalation in the Middle East and growing concerns over a sharp rise in oil prices have triggered a broad downturn across nearly all major stock markets in Asia, Trend reports.
According to media reports, the impact is being felt most strongly in East Asia’s leading industrial economies, particularly in countries that rely heavily on hydrocarbon imports, such as Japan and South Korea.
For example, Tokyo’s Nikkei index has dropped by 7%, signaling a significant market decline. South Korea’s KOSPI index has also fallen by 8%.
Amid the downturn, the South Korean government is considering an unusual measure to stabilize the market, introducing a price cap on oil. Such a step has not been implemented in the country for the past 30 years.
Despite the markets remaining in negative territory, statements from the White House in the United States suggesting that the situation represents a short-term but sharp shock and that oil prices will eventually decline have done little to reassure investors.
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