Sustained rise in oil prices negative for Asian stocks, policymakers may ease rates if growth hit: Report

If the oil prices move higher it would be negative for Asian stocks, but if the ongoing conflict ends relatively quickly, any adverse impact on markets is likely to be short-lived, according to a report by Invesco.

- TBG NETWORK

The report highlighted that a prolonged increase in oil prices would weigh on equities, including those in Asia. Conversely, a swift resolution to the conflict could limit the damage to stock markets. It said “A sustained move higher in oil prices would be negative for stocks, including Asian stocks” While noting that geopolitical outcomes are impossible to predict, the report said sustained geopolitical tensions pose downside risks to Asia's overall economy. If supply-side disruptions lead to prolonged oil price spikes, the region could face weaker growth and heightened macro-stability concerns.