Investing.com - In the wake of escalating tensions in the Middle East, Asian Pacific share markets, including the S&P/ASX 200, KOSPI 200, and Nikkei 225, opened with declines on Monday, reflecting a dampening of risk sentiment.
North American markets also faced a challenging trading day on Friday, with the Dow Jones Industrial Average, the S&P 500, and the NASDAQ Composite all experiencing declines. Amidst the turmoil, Treasury yields fell as investors sought refuge in bonds. JPMorgan Chase & Co (NYSE:JPM), the United States' largest bank, forecasted stagnant net interest income for the year, while Citigroup Inc (NYSE:C) and Wells Fargo & Company (NYSE:WFC) anticipate a drop, leading to a slump in their stocks.
The escalation of conflict in the Middle East, particularly Iran's attack on Israel, added to the unsettled market conditions. Gold prices reached a record high, although the buyers remain somewhat unidentified. Amidst the tumult, investors are looking forward to potentially strong earnings as the quarterly reporting season continues next week.
In the commodity markets, Brent crude oil saw a 0.8% increase, settling at US$90.45 a barrel, while gold dipped by 1.2% to US$2,344.37. Australian bond markets saw an increase in yields, with the 2 Year yield at 3.89% and the 10 Year yield at 4.26%.
In Asia, Chinese shares closed lower with losses led by energy and property stocks, while the Hang Seng Index in Hong Kong also closed lower following a decline in Chinese exports. Japanese stocks, however, ended higher, driven by gains in electronics and real estate stocks.
In India, shares closed lower, weighed down by the recent US inflation data that exceeded expectations. Almost all sectors ended in the red, with healthcare and energy stocks seeing the most significant losses.
European shares ended mixed on Friday, with the Stoxx Europe 600 experiencing a slight gain, while the CAC 40 and Germany's DAX saw minor declines. The FTSE 100 outperformed global peers, closing up 0.9%, supported by a rally in heavyweight miners and oil stocks. The performance of the FTSE 100 was attributed to investors moving from overvalued US stocks into undervalued UK stocks.