Asian markets traded sharply lower on Monday amid surge in crude oil prices and worries that the US-Iran war will last for longer as the ceasefire talks failed.

The US-Iran ceasefire talks over the weekend in Pakistan failed to reach any agreement to end the war in the Middle East. The US moved to block the Strait of Hormuz and Iran’s ports escalated the global energy crisis and reignited worries that the US-Iran war will last longer than feared.

Japan’s Nikkei 225 declined 0.84%, while the Topix fell 0.42%. South Korea’s Kospi plunged 1.83%, while the Kosdaq dropped 1.43%. Hong Kong Hang Seng index futures indicated a lower opening.

Australia’s S&P/ASX 200 was trading 0.74% lower.

Meanwhile, yields on Japan’s benchmark government bonds (JGBs) hit a 29-year high. The benchmark 10-year JGB yield rose 5.5 basis points (bps) to 2.490%, the highest since early June 1997, while the five-year yield rose 4 bps to a record high of 1.900%, Reuters reported.

US Stock Futures

On Wall Street, US stock futures declined overnight. Dow Jones Industrial Average futures tanked 517 points, or 1.1%, while S&P 500 futures dropped 1.1% and Nasdaq 100 futures slipped 1.2%.

Indian Stock Market

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Monday, tracking weak global market cues.

The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 23,773 level, a discount of nearly 328 points from the Nifty futures’ previous close.