BENGALURU: Most Asian equities and currencies fell on Friday as fresh attacks in Gulf waters kept crude near USD100 a barrel, strengthening inflation fears and driving investors toward the safety of the US dollar.
MSCI’s emerging market stock index fell 1 percent on Friday and is down nearly 8 percent since late February, while the EM currency gauge slipped 0.3 percent and is off about 2 percent over the same stretch.
The dollar index reached its highest level since November 28, thanks to its safe-haven appeal and also because the US is a net energy exporter.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz - the route for a fifth of global oil supply - closed, even as Washington tried to ease supply constraints with a 30-day waiver on stranded Russian crude.
The strains from the war are spilling into the real economy, with airlines flagging fuel concerns and flight cancellations leaving travellers stranded. Governments in India, Thailand and the Philippines have moved to prioritise household liquefied natural gas supplies.
Meanwhile, Thailand demanded an apology from Iran after a Thai vessel was hit by a projectile in the Strait of Hormuz on Wednesday, causing a fire and forcing the crew to abandon ship.
Jakarta’s stocks fell more than 2 percent on Friday, marking a third straight session of declines. Year-to-date losses were nearly at 17 percent, the weakest in the region.
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