Asian stock markets retreated on Monday, weighed down by heightened geopolitical concerns and rising oil prices. Key indices across the region, including Japan’s Nikkei 225 and Hong Kong’s Hang Seng, posted declines as investors digested the implications of new Western sanctions on Russia. These developments have exacerbated fears of economic disruption, pressuring risk-sensitive assets.
Brent crude surged above $85 a barrel after Russia announced retaliatory measures targeting Western nations, intensifying energy supply concerns. The energy sector outperformed as oil giants rallied on expectations of tighter global supply. However, broader equity markets struggled to maintain footing, with traders increasingly cautious amid volatile trading conditions.
Investors are now closely monitoring upcoming economic data and central bank commentary for clues on how geopolitical risks might influence monetary policy. With volatility expected to persist, safe-haven assets like gold saw renewed demand, reflecting broader market uncertainty.
