Asia Hit Hard By Oil Price Spike: Nomura's Wang

Benchmark oil has surged past $100/bbl as the Middle East conflict disrupts global trade flows and widens crude spreads. Nomura's Julia Wang flags heightened inflationary pressure and downside growth risks for Asian economies from higher energy costs and trade disruption. Expect risk-off dynamics, pressure on EM/Asia growth-sensitive assets and FX, and potential upward revisions to inflation forecasts.

Analysis

Benchmark oil has surged past $100/bbl as the Middle East conflict disrupts global trade flows and widens crude spreads. Nomura's Julia Wang flags heightened inflationary pressure and downside growth risks for Asian economies from higher energy costs and trade disruption. Expect risk-off dynamics, pressure on EM/Asia growth-sensitive assets and FX, and potential upward revisions to inflation forecasts.