Oil Shock Rattles Asian Markets: Global Implications

Asian markets plunged as oil prices soared to near $120 a barrel. Japan's Nikkei dropped over 5%, South Korea's Kospi fell 6%, and oil price spikes reached levels not seen in 14 years. Rising energy costs threaten global economic stability, fueling inflation and straining nations heavily reliant on imports.

Asian stock markets nosedived Monday after oil prices surged to nearly $120 a barrel, triggering economic alarms across the region. Japan's Nikkei 225 plummeted more than 5%, while South Korea's Kospi dropped 6%, amid increased selling prompted by soaring energy prices.

The spike, exacerbated by ongoing conflicts targeting critical oil infrastructure, has inflamed concerns in nations dependent on crude imports. South Korean President Lee Jae Myung urged vigilance against market volatility and called on authorities to prevent panic buying and collusion in the energy sector.

As regional economies, including Taiwan and Hong Kong, brace for further disruptions, Southeast Asian leaders convene in Manila to devise strategies to mitigate the financial shockwaves. Analysts warn that sustained high prices could exacerbate global inflation and economic stagnation.

(With inputs from agencies.)