Key Gulf markets rebound amid Iran-Israel conflict
Key stock markets in the Gulf rose in early trade on Monday, recovering some of their losses from previous sessions when they were rattled by the escalating conflict between Israel and Iran.
Saudi Arabia’s benchmark index gained 1.2 percent, led by a 1.9 percent rise in Al Rajhi Bank and a 3.2 percent increase in Saudi Arabian Mining Company.
The index had fallen 1 percent on Sunday.
Oil prices – a catalyst for the Gulf’s financial markets -were volatile, after surging 7 percent on Friday, as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.
The Qatari index advanced 1.7 percent – a day after falling more than 3 percent – buoyed by a 2.4 percent leap in Gulf’s biggest lender Qatar National Bank and a 1.5 percent gain in petrochemical maker Industries Qatar.
Iranian missiles struck Israel’s Tel Aviv and the port city of Haifa before dawn on Monday, destroying homes and fuelling concerns among world leaders at this week’s G7 meeting that the confrontation could lead to a broader regional conflict.
Israel said it had targeted Iran’s nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon.
Iran has promised a harsh response. Dubai’s main share index added 0.8 percent, with Parkin Company – which oversees public parking operations – rising 2.3 percent and toll operator Salik was up 0.7 percent.
European stocks edge higher
European shares were slightly higher on Monday, after rounding off last week with losses, as some corporate news-driven gains limited declines from increasing geopolitical tensions in the Middle East.
The pan-European STOXX 600 was up 0.2 percent at 545.87 points at 0706 GMT, starting the week on a positive note.
Gucci parent Kering jumped 7.2 percent after a report said Luca de Meo would become the new CEO, after he turned around troubled Renault. Shares of the French automaker fell 5.6 percent.
A separate report said Tokyo’s Nissan planned to reduce its stake in Renault.
Meanwhile, geopolitical tensions continued to dominate headlines.
Iranian missiles struck Israel’s Tel Aviv and the port city of Haifa before dawn on Monday, in the latest series of tit-for-tat attacks that started last week.
The escalating tensions give markets another cause of worry as they were already grappling with the ramifications of a changing US tariff policy.
The energy sector was among the biggest gainers, up 1.1 percent, tracking a slight uptick in oil prices.
The travel and leisure sector rebounded with a 1 percent gain.
Ladbrokes owner Entain gained 5.2 percent after its US sports-betting joint venture with MGM Resorts – BetMGM – raised its annual revenue and core earnings forecast.
Energy stocks lift Australian shares
Australian shares rose in early trade on Monday, buoyed by energy stocks gaining on oil strength as Israel-Iran tensions sparked supply disruption fears, while oil and gas major Santos surged after receiving an $18.7 billion takeover offer.
The S&P/ASX 200 index advanced 0.2 percent to 8564.7, as of 0030 GMT.
The benchmark gained about 0.6 percent last week. Israel and Iran launched fresh attacks on Sunday, raising concerns of a broader regional conflict, triggering fears that the escalating battle could widely disrupt oil exports from the Middle East.
Energy stocks rose 6.1 percent and were headed for their best day in nearly five years. The sub-index hit its highest level since Oct. 11, on track for its sixth consecutive session of gains.
Santos rose 12.1 percent to hit its highest level since Aug. 1 after it received a $18.7 billion takeover bid from an international consortium led by Abu Dhabi’s National Oil Company (ADNOC).
The country’s bourse operator ASX fell 5.2 percent, hitting its lowest level since April 23, after the securities regulator said it had launched a probe into ASX’s risk management practices. Financials shed 0.2 percent, with the country’s “Big Four” banks losing between 0.1 percent and 0.7 percent.
Japan’s Nikkei rises
Japan’s Nikkei share average rose on Monday even as the conflict between Israel and Iran continued, with a weaker yen supporting sentiment.
As of 0155 GMT, the Nikkei was up 0.9 percent at 38,164.07, while the broader Topix rose 0.54 percent to 2,772.46.
“Investors were less worried about geopolitical tensions in the Middle East, and the market saw no need for additional sell-offs,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
“There is an optimism that the conflict will be contained with countries like the United States and Russia stepping in,” he added.
Japan’s Nikkei climbs for fourth day on US-China trade framework; Hino plunges
The Nikkei fell on Friday after Israel launched strikes against Iran, and Wall Street ended sharply lower later in the day. On Monday, Advantest jumped 8 percent to provide the biggest boost to the Nikkei.
The chip-making equipment maker, one of the largest components of the Nikkei, tends to be bought when the market bets the upside of the benchmark index.
Indian stocks set for muted start to week
India’s equity benchmarks are set to open little changed on Monday after two straight sessions of losses, as the conflict between Israel and Iran showed no signs of cooling, denting risk sentiment.
The Gift Nifty futures were trading at 24,791 as of 7:32 a.m. IST, indicating that the Nifty 50 will open near Friday’s close of 24,718.6.
Both the benchmarks posted weekly losses on Friday as Israel’s military strikes on Iran escalated tensions in the Middle East.
Over the weekend, Israel and Iran launched fresh attacks, killing and wounding civilians and raising concerns of a broader regional conflict.
Other Asian markets opened on a subdued note, with the MSCI Asia ex-Japan index losing 0.2 percent, while oil prices advanced on supply concerns due to geopolitical tensions in the oil-rich Middle East region.