Israel-Hamas conflict sends ripples through Asian stock markets, SET suffers most

Over the past 20 days, the SET Index plummeted by 4.67% – the lowest among other Asian stock markets. Sparked on October 7, the continuing Israel-Hamas conflict has sent ripples across the global financial spectrum.

However, insights from Asia Plus Securities suggest that the conflict’s reach may not extend beyond the region, alleviating initial fears of broader ramifications. In contrast to other conflicts like the Russia-Ukraine war, crude oil prices have remained stable within the US$80-$85 per barrel range. This stability can be attributed to the fact that neither Israel nor Palestine are significant global oil producers.

Considering this, Asia Plus Securities believes the stock market has absorbed much of the conflict’s impact. Consequently, a shift of funds towards riskier assets, such as the stock market, is on the horizon, research shows.

Since the Israel-Hamas conflict started, the SET index has seen a drop of more than 68 points or 4.7%. As of October 26, the SET Index closed at 1,371.22 points.

In the broader Asian financial landscape, we assess how other stock markets have fared between October 6 and 26, based on data from Investing.com:

• SET (Thailand): Dropped the most, shedding 67.23 points (4.67%), closing at 1,371.22 on October 26, down from 1,438.45 points on October 6.

• Shanghai (China): Dropped by 122.18 points (3.93%), closing at 2,988.30 on October 26, down from 3,110.48 points on October 6.

• Hang Seng (Hong Kong): Dropped by 441.37 points (2.52%), closing at 17,044.61 points on October 26, from 17,485.98 points on October 6.

• Nikkei 225 (Japan): Dropped by 392.89 points (1.27%), closing at 30,601.78 points on October 26, down from 30,994.67 points on October 6.

• KOSPI (South Korea): Dropped by just 109.65 points (0.05%), closing at 2,299.08 points on October 26 from 2,408.73 points on October 6.