Hong Kong (CNN Business)Stocks tumble on Monday as oil prices surge to a 13-year high, raising fears of a further rise in inflation that could hurt the global economy.
In Asia, Hong Kong Hang Seng Index (HSI) was down as much as 5% in morning trade. It was last down 3.4% and on track to post its worst daily decline in seven months. Japan’s Nike 225 (N225) fell 3.6%. South Korea kospi (COSPI) down 2.5%. of China Shanghai composition (SHCOMP) 1% lost.
In the US market, Dow futures fell 450 points, or 1.3%. S&P 500 and Nasdaq futures fell 1.6% and 2%, respectively.
The latest turmoil came as US crude futures rose more than 7% to $124.17 a barrel, its highest since August 2008. Brent crude also rose to its highest since 2008, up 8% to $127, $66 a barrel.
Oil prices continued to rise after US Secretary of State Antony Blinken said in an interview with CNN on Sunday that the United States is working with its allies in Europe to explore the possibility of banning Russian oil imports to further punish the country.
“In case of implementation [of the ban]The move will further exacerbate supply-demand imbalances in an already tight oil market,” wrote Yeap Jun Rong, a market strategist at IG Group.
“Higher oil prices may pose a threat to corporate margins and consumer spending prospects at a time when inflationary pressures will put greater pressure on the Fed to over-revise with faster and bigger rate hikes,” he added .
Delays in concluding Iran’s nuclear talks increased investor concerns over supply disruptions, Yeap said.
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