Asian Markets Plummet on Higher US Rates and Oil Prices

Asian markets took a hit on Monday as investors grew increasingly concerned about rising US interest rates and higher oil prices. The KOSPI in South Korea dropped 2.52%, while China's Shanghai Composite and Shenzhen Composite fell 1.74% and 3.37%, respectively.

The Nifty 50 in India declined by 1.21%, and Taiwan's benchmark slipped 0.28%. However, Hong Kong's Hang Seng managed to gain 0.64%, and Australia's ASX 200 rose 0.3%. Japan's Nikkei fell 0.12%.

Oil prices continued their upward trend due to ongoing uncertainty over a potential US-Iran truce. Brent crude futures reached $106.94 a barrel, up 2.51%, while US crude gained 1.79% to $94.06 a barrel.

The rise in oil prices has exacerbated inflation concerns, particularly as refining capacity remains limited and diesel prices have surged relative to crude. Central banks are facing increased pressure to maintain tight monetary policy, with the Reserve Bank of Australia and the US Federal Reserve expected to consider rate hikes.