US President Donald Trump warned of a “major retaliation” against Tehran after it threatened revenge for the killing on Friday of commander Qasem Soleimani, which shocked world markets and sparked a sell-off in stocks and a spike in crude. Some of the GCC members, including Kuwait, Qatar and Bahrain, are home to major US military bases, while there are also hundreds of troops in Saudi Arabia. The losses on equity markets extended into Asia, with Tokyo down almost 2 percent as dealers returned for the first time since the New Year break. However, escalating friction between the US and Iran would likely have limited impact on Asian stock markets, according to UBS Global Wealth Management and JPMorgan Asset Management. Previous periods of increased tensions suggest that the impact on broader markets tends to be “short-lived,” said Mark Haefele, global chief investment officer of UBS Global Wealth Management in Zurich, Switzerland.

Source: Taipei Times January 06, 2020 16:30 UTC