Investing.com Asian-Pacific markets are preparing for a mixed open on Monday as the escalating situation in the Middle East and the US reporting season influences investor sentiment.
By 9:20am AEST (11:20pm GMT) S&P/ASX 200 fell 0.2% while Nikkei 225 Futures added 0.3%.
The ongoing Israeli invasion of Gaza, aimed at toppling Hamas, has raised investor concerns about a potential escalation of the war and its possible impact on Iranian oil exports. This could lead to stricter sanctions and push energy prices higher. Brent crude futures, the global oil benchmark, saw their greatest daily gain since April, closing at $90.89 a barrel.
Meanwhile, United States 10-Year yields, which have been on an upward trajectory and pushing stocks down, saw a slight decrease on Friday. Gold Futures also rose, experiencing the biggest daily gain in dollars since the Covid-19 lockdown in April 2020.
Asian currencies remained relatively stable, with the, Indonesian Rupiah, Korean Won, and Vietnamese Dong unchanged. The Thai Baht and Australian dollar gained 0.3% apiece while the US Dollar Index eased 0.1%.
In China, the Shenzhen CSI 300 closed lower, pulled down by consumer and retail stocks. The Hang Seng also closed lower as investors digested China's September inflation and trade data. Japanese stocks ended broadly lower, influenced by sharp falls in tech and pharmaceutical stocks. Indian shares edged lower, weighed down by IT and bank stocks, amid cautious sentiment ahead of the upcoming earnings season.
In Europe, stocks fell as markets fret about a potential rise in violence in the Middle East. The Stoxx Europe 600, DAX, and CAC 40 all fell 1%, while the FTSE 100 retreated 0.6%. Despite this, oil and defense shares were among the relatively few risers as investors contemplated the implications of the Israel-Hamas conflict for oil supply and demand and government defense spending.