Equities tumbled Monday in Asia after Iran ramped up Middle East tensions by launching a barrage of rockets at Israel over the weekend, fuelling fears of a wider conflict in the volatile region.
The analysts said there was hope among traders that the crisis could be contained.
That sliver of optimism helped drag oil prices lower.
Asian markets mostly fell Monday, though they pared their initial big losses.
Tokyo, Singapore, Seoul, Taipei and Manila were at least 1% down, while there were also losses in Hong Kong, Sydney and Wellington.
Shanghai rose more than 1% after China on Friday unveiled fresh market regulatory measures that one analyst said could help its long-term performance.
U.S. futures rose, having dropped sharply on Friday as investors went nervously into the weekend.
“The muted market response likely stems from the highly intricate sentiment in the market at this stage,” said IG Markets’ Hebe Chen.
“Market participants are certainly not giving up hope that the past weekend’s events were just a one-off occurrence while holding their breath for what could happen next.”
With worries about an escalation subsiding for now, oil prices dipped, though observers warned they could spike back above $100 if the crisis worsens.
AFP
