The Asian stock markets remained in the bear territory for Thursday as well, as climbing brent rates fogged economic outlook and stoked inflation concerns among investors.
Japan's Nikkei 225 was down 1% to 69,339.80, while the South Korean Kospi traded 1% lower at 6,731.75 as of 10:12 a.m. JST and 10:07 a.m. KST,respectively. Further, the Australian Securities Exchange S&P/ASX 200 fell 0.51% to 8,682.90. Overall, MSCI's Asia Pacific Index slipped 0.5%.
Shares of Samsung Electronics were initially trading 0.8% lower, only to suddenly swing to green and trade 0.23% higher. By 10:23 a.m. KST, the stock was down 0.4% to 267,500 South Korean Won.
On Wednesday, Kospi had tanked sharply and settled nearly 2% lower while the Nikkei closed at 70,035.71, down 648.27 points or 0.92% from the previous session.
ALSO READ: Brent Crude Above $101: Iran Strike Fears, Gulf Output Cuts Push Oil Higher
The steep declines come as crude oil prices find room to resume their rally once again, after the US-Iran war shows signs of further escalation, with little to no indication towards a resolution
Brent crude traded 1.52% higher at $101.73 per barrel, while West Texas Intermediate was up 1.4% to $89.50 per barrel. US President Donald Trump had instructed the military to be prepared to strike Iran, with timing still under consideration.
The prospect of potential US military action against Iran has added another layer of uncertainty to an already disrupted oil market. Oil prices have also been spiralled because of continued risks to supply routes in West Asia. Attacks on tankers transiting the Strait of Hormuz have raised fresh concerns among traders over the security of one of the world's key oil shipping routes.
Elsewhere, Oman and Iran agreed on safe transit routes in the Strait of Hormuz and have decided to present their proposal internationally, according to Iran's Foreign Ministry spokesman Esmaeil Baghaei.
Iran's official news agency IRNA quoted Baghaei as saying that Tehran and Muscat agreed on "the geographical coordinates of safe routes to and from the Strait of Hormuz" and expect to raise the proposal with unnamed international authorities soon.
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