Asian Stock Markets Stung by War News, Gold and Oil Rise

Stock markets across Asia, the first to open since war erupted in the Middle East, were down in midday trading on Monday. Airline stocks dropped as airports across the Gulf states closed, and energy-related stocks rose as oil prices surged.

The benchmark Shanghai Composite Index was surviving the turmoil better than other markets, turning flat after slipping earlier. It closed the morning session at 4,163. The Shenzhen Component Index was down 0.75 percent, while the tech-focused ChiNext declined 0.78 percent.

"Market sentiment points toward an expected prolonged," said Jiang Yifan, an analyst with Shenwan Hongyuan Securities. "Compared with other overseas markets, the Chinese mainland is showing more resilience, but it all depends on what happens in the following days."

Hong Kong's Hang Seng Index was down 1.6 percent, and the Nikkei in Tokyo was 1.4 percent lower. The South Korean market was closed for a holiday.

In Hong Kong, shares in Shanghai-based China Eastern Airlines plunged 7 percent and Cathay Pacific, Hong Kong's flagship carrier, was down 3 percent. China National Offshore Oil, Zhongman Petroleum and Shandng Tongyuan Petroleum rose to the 10 percent daily trading ceiling in Chinese mainland markets.

Among mid-day losers in Chinese mainland markets were HuiChuangDa Tech, Guangkang Biochemical and Zhonglan Environmental Protection, which all dropped by the 10 percent daily limit.

At mid-day in Asia, US futures pointed to an 0.9 percent drop when the S&P 500 index opens later in the day. Benchmark Brent crude was up 6 percent at US$77 a barrel, and gold rose 2.3 percent to US$5,366 an ounce.