BANGKOK – Shares skidded in Asia on Monday, with Tokyo’s Nikkei 225 index shedding 1.9 percent on concern over escalating tensions in the Middle East following the killing by a United States (US) air strike of an Iranian general.
Shares also fell in most other Asian markets, apart from Australia.
The Shanghai Composite index gave up early gains despite a report that Chinese officials plan to visit Washington next week for the signing of a trade deal with President Donald Trump.
Asian economies depend heavily on oil from the Middle East, and oil prices surged, with US crude up two percent and Brent crude up 2.3 percent. Stocks fell broadly on Wall Street on Friday, ended a five-week winning streak for the S&P 500 a day after the benchmark index hit its latest record high.
An Iranian general who replaced the leader killed by the US airstrike in Baghdad vowed Sunday to take revenge as Tehran abandoned the remaining limits of its 2015 nuclear deal with world powers in response to the slaying.
Esmail Ghaani’s threat came as the backlash over the US killing of top Iranian general Qassem Soleimani mounted, with Iraq’s parliament calling for the expulsion of all American troops from Iraqi soil.
The Nikkei 225 index in Japan slid 1.9 percent to 23,204.86 while Hong Kong’s Hang Seng index lost 1.2 percent to 28,116.45. In South Korea, the Kospi lost one percent to 2,154.64. The Shanghai Composite index slipped .4 percent to 3,070.48. India’s Sensex sank 1.5 percent to 41,825.56. Shares also fell in Taiwan and Southeast Asia. (AP)
