Oil prices soared, inflation concerns revived, Asia-Pacific stocks and bonds fell, the Nikkei fell more than 2%, the Korea Composite Index fell 3%, and crude oil continued to rise.

# Bao Yilong

Source: Wall Street CN

On Thursday, the **MSCI Asia Pacific Index** fell 1.1%. The **Nikkei 225** opened 1.7% lower and later extended losses to 2.6%. South Korea’s **KOSPI** opened 2.8% lower; **Samsung Electronics** dropped 4%, and **SK Hynix** fell 4.2%. The **Bank of Korea** emphasized it would swiftly deploy market stabilization measures if necessary. Spillover from rising U.S. Treasury yields also pressured Asia-Pacific bond markets. Australia’s 10-year government bond yield jumped about 5 basis points to 4.979%.

The combined impact of escalating Middle East geopolitical tensions and surging oil prices has heightened global inflation uncertainty. The Federal Reserve held rates steady and signaled a **“higher for longer”** interest rate path, weighing on global risk appetite. Asia-Pacific equities opened sharply lower, while crude oil extended overnight gains.

On Thursday, the MSCI Asia Pacific Index declined 1.1%, Japanese stock index futures fell roughly 3%, South Korea’s KOSPI opened 2.8% lower, and Australia’s benchmark index dropped 1.6%.

According to CCTV News, as of local time March 18, the Trump administration is considering deploying thousands of U.S. troops to reinforce its military operations in the Middle East. Separately, the media office of Abu Dhabi, United Arab Emirates, confirmed that debris from intercepted incoming missiles damaged the **Habshan gas facility** and **Bab oilfield**.

Strikes by Iran and Israel targeting critical Middle East energy infrastructure—including the world’s largest LNG export facility—have introduced fresh upside risks to already soaring oil prices. **Brent crude** topped $110 in the previous session, and **WTI crude** continued rising during Asia hours on Thursday to $98.6 per barrel.

Meanwhile, Wall Street CN reported that Federal Reserve Chair **Jerome Powell** stated the Iran conflict has added new uncertainty to the inflation outlook, making the rate path harder to gauge. Traders have sharply scaled back expectations for interest rate cuts this year.

The Nikkei 225 opened 1.7% lower before widening losses to 2.6%.

Samsung Electronics fell 4%, while SK Hynix dropped 4.2%. The Bank of Korea reiterated it would closely monitor financial market conditions amid ongoing volatility and swiftly implement stabilization measures if needed.

Spillover from rising U.S. Treasury yields also pressured Asia-Pacific bond markets.

Australia’s 10-year government bond yield surged about 5 basis points to 4.979%, and New Zealand’s 10-year yield also jumped to 4.64%. New Zealand’s latest data showed the economy grew slower than expected in the fourth quarter, further dampening market sentiment.

In currency markets, the **U.S. Dollar Index** held firm above the 100 level, with USD/JPY trading at 159.8.

## Risk Warning and Disclaimer

The market involves risks, and investments require caution. This article does not constitute personal investment advice and does not account for the specific investment objectives, financial situations, or needs of individual users. Users should assess whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment decisions made based on this article are at the user’s own risk.