South Asia

Narendra Modi, the Prime Minister of India, said that the fundamentals of Indian economy were strong, and that the country had enough petroleum, fertilizers, and coal to weather the trade and energy disruptions brought on by the U.S. and Israeli 'war on Iran. The conflict, which started last month, has affected sectors ranging from air travel, shipping, and gas supplies. It also caused the Strait of Hormuz to be almost closed, which is a major conduit for 40% of India’s crude oil imports. Modi, the lower house of parliament, said that India had enough petroleum reserves, with strategic reserves exceeding...

India's benchmark indexes rose on Monday morning, rebounding from their worst week for years. However, investors remain?wary that crude oil will continue to rise above $100 per barrel amid the prolonged Middle East conflict. As of 10:08 a.m. IST, the Nifty 50 index rose by 0.2%, to 23,189. The BSE Sensex increased by 0.18%, to 74697.2. Nine out of 16 major sectors were higher. Mid-cap and small cap fell by 0.2% and 0.7% respectively. The U.S. and Israeli war against?Iran has led to the closure of Strait of Hormuz, a vital artery of global oil?and?gas shipments. Brent crude was hovering...

An official said on Thursday that Nepal would begin rationing cooking gas due to fears of a possible nationwide shortage caused by the Middle East conflict. Chandika Bhatta, executive Director of the state-run Nepal Oil Corporation said that authorities will only refill half of empty cylinders of consumers starting Friday in order to extend the life of its liquefied petrol gas (LPG). The shortage of liquefied petroleum gas (LPG) is due to the U.S. and Israeli war against Iran, and Tehran's response across the region. This has effectively stopped shipping through the Strait of Hormuz. Bhatta said that despite assurances...

Indian benchmark shares fell Wednesday - after a recovery in the previous session - as investors were uncertain about the impact of the Middle East War on inflation and growth. Oil prices were also fluctuating. As of 10:40 a.m. IST, the Nifty?50 dropped 0.7% to 24,087 while the BSE Sensex fell 0.8% to 77.556.77. In early trading, the indexes were unchanged. Devarsh Vakil is the head of Prime Research for HDFC Securities. He said: "There's still considerable geopolitical unrest and that's why markets are on edge." Israel and the United States launched what some have described as the war’s most...

Multiple sources claim that Donald Trump may announce an announcement as early as Monday evening to curb the soaring global oil prices in light of the conflict with Iran. According to multiple sources, the White House is concerned that the spike in oil prices after more than a week of U.S.-Israeli strikes on Iran could hurt U.S. consumers and businesses ahead of November's midterm elections when Trump and his fellow Republicans hope they can retain control of Congress. Two sources familiar with the situation said that Trump was in Florida to address congressional Republicans who were gathered at an annual...

The oil prices are soaring, while the share market is tumbling on the fear that the escalating U.S./Israeli war against Iran will cut energy'supplies and hamstring industry?all over the world. The following?are?actions?that governments are taking, or plan to take?to reduce the impact of war on their economies. SOUTH KOREAN PLANS FUEL CAPITAL South Korean President Lee Jae Myung announced?on?Monday that the authorities will cap domestic fuel prices?for?the first?time in almost 30 years. He said that the country would also "look for energy sources beyond those shipped through the Strait of Hormuz" and a 100 trillion won (67 billion dollars) programme...

Pakistan raised prices for petrol and diesel by?about 20% on Friday, citing a rise in oil prices due to the conflict in Iran. In a video message broadcast on television, Ali Pervaiz Malik, the Petroleum Minister announced an increase of 55 rupees ($0.20 per liter) for diesel and petrol to 321.17 rupiahs. The minister stated that the sharp rise in global petroleum prices forced them to make this decision. This decision will likely lead to higher inflation in Pakistan and affect the country's poor population. Fuel stations in major cities such as Lahore and Karachi were crowded with people before...

Indian shares fell Friday, with losses mainly in financial stocks. Investors remained cautious amid the U.S.-Israeli conflict against Iran that has pushed up oil prices and weakened global risk appetite. As of 10:05 am IST, the BSE Sensex fell 0.61% and was down to 79530.73. The Nifty 50 was also down by 0.59%. The conflict has raised fears that a wider energy supply shock could further increase crude prices, revive inflation pressures and cloud the global economic outlook. The dollar strengthened as the conflict continued to show no signs of abating. Brent crude rose 5% on Thursday to a 20...

Analysts say that the Middle East conflict and higher oil prices threaten to shift emerging markets towards a more "hawkish" policy. In the next two weeks, more than a dozen emerging market central banks will be meeting to discuss their monetary policies. Goldman Sachs analysts noted that "markets that have been under the most pressure are those that were owned by investors anticipating rate?cuts in CEEMEA, LatAm and Latin America) and that also tend to be highly sensitive to global supply side shocks." Global financial markets are gripped by fears of an oil price spike due to the U.S. -...

Indian shares rose in morning trading on Thursday. A rebound in Reliance, and a rally in global stocks helped the market. Risk appetite had improved after the war in the Middle East, which had dragged down shares for the remainder of the week. As of 10:02 a.m. IST, the Nifty 50 index was up 0.61% to 24,631.3, and the BSE Sensex gained 0.54%, reaching 79,530.98. Over the last three sessions, both benchmarks dropped by about 4%. Avinash Gorakshakar is the director of research for Profitmart Securities. He said that while the markets may have staged a partial rebound after the...

Indian shares will open lower on Tuesday, as escalating U.S. - Israel?clashes? with Iran lifted crude oil to a high of 19 months,?disrupted Middle East shipments? and stoked fear of a long-term conflict?,?intensifying the risk aversion. Gift Nifty futures were trading at 24,442.5 points by 7:52 am IST. This indicates that the benchmark Nifty will open lower than Monday's closing price of 24,865.7. The domestic markets were closed for a holiday in the locality on Tuesday. Wall Street also closed lower over night on fears that a larger Mideast conflict could cause an energy shock, which would increase inflation and...

Donald Trump said he was'very disappointed'?with British Premier?Minister Keir Starmer because he refused to allow the U.S. use of the Diego Garcia Air Base to conduct strikes against Iran, according to an interview with the Daily Telegraph. The?U.S. was initially reportedly denied permission to conduct air strikes from its bases. Starmer said he would accept a request to use its bases for air strikes against Iranian targets. In an interview published Monday, Trump said that Starmer's change of heart took "too much time". He told The Telegraph that "that's probably never happened before" between our countries, and added: "It sounded...

Two merchant bankers on Monday said that India's JSW Kalinga Steel is set to issue its first shorter-duration bonds before the end of this month, as it aims to raise up to 95 billion rupees (about $1.03 billion). Bankers said that the company will likely sell two tranches with a five-year term each. The aim is to raise 60 billion rupees or 35 billion rupees through these bond sales. The notes would have zero-coupon paper and put and call options. Crisil rated the bonds of JKSL as AA. The ratings took into account the credit support that was expected from...

The gold discounts in India reached their deepest level in nearly a decade this week as the demand remained'subdued' and some traders avoided paying import duties. Meanwhile, escalating Middle East conflict boosted demand for safe havens in China. "A few importers to India are declaring gold as platinum studded jewellery at customs, even though it contains over 90% gold. A Mumbai-based gold dealer said that they are able sell the duty-free gold at a steep discount. Imports of gold are subject to a 6% duty. However, imports of platinum-studded jewellery can be made duty-free. This week, Indian gold dealers offered...

The 'Coal Ministry' said that India had enough coal to meet what was expected to be a 'unprecedented spike in demand over the summer months. This comes after the gas supply disruptions caused bythe U.S./Israeli war against Iran. In a statement, the Ministry of Energy said that the total coal supply in the country was 210 million tons. This would be enough to?fuel consumption for 88 days. South Asia still depends on coal to generate three-fourths?of its electricity, despite a record-breaking increase in renewable energy production. India is expected to increase its coal power use in order to meet summer...

Analysts and traders say that gold in Dubai trades at a lower price than in London due to flight restrictions caused by the conflict in the Middle East. Demand is also subdued because of the uncertainty over the length of the war. The U.S. and Israeli war against Iran has caused widespread cancellations of passenger flights across the Middle East. This has disrupted the flow of gold through Dubai, a major trading hub that supplies Switzerland, Hong Kong, and India. A Dubai-based dealer said, "The market is still at a discount. However, in thin trade, the variations are wide. They...

India's Jindal Steel said on Friday that there could be some delays in steel shipments in the Middle East in the near term because of?the conflict? in the region. The Middle East is a small part of the country's export market, but the company remains committed to serving the region. Abhyuday Jindal is the managing director of Jindal Stainless. He said that given the escalating weather conditions, there could be a few?delays? in shipment arrivals. This may be due to the extended?transit times across certain international shipping and airspaces. He said that it would be premature to comment on any...

The demand for gold in India slowed this week due to volatile prices amid the escalating Middle East conflict. Premiums in China remained 'firm' on a rise in investment demand. The closure of airspace in the region has sharply reduced supply, resulting in a reduction of discounts across India. Retail buyers in India are having a hard time digesting the steep price increase. Gold is now unaffordable at these prices, said Varghese Aukka, managing Director of Jos Alukkas in Thrissur, Kerala. On Friday, the price of gold in India was around 160,000 rupees per 10 grams, up from 169,880 earlier...

Three'sources' familiar with the matter said that Aditya Birla Global Trading, an Indian commodities trading company, is resuming its iron ore operations as other traders leave the market because of record low volatility. The Singapore-headquartered company, part of India's conglomerate Aditya Birla Group, which also owns aluminium producer Hindalco, trades ?agriculture, energy and metals but not iron ore, according to ?its website. According to two sources, the company has suspended its iron-ore business and will return to the Chinese market in order to diversify their portfolio and reduce the risk. All sources were speaking under condition of anonymity, as they...

Michael Flacks, the CEO of Flacks Group, said that if current attempts to sell Thyssenkrupp's steel division fail, they would be "ready" to bid for it. Thyssenkrupp and Jindal Steel International have been in discussions since the autumn about a possible sale for Thyssenkrupp Steel Europe. However, these discussions are yet to produce a formal bid. Flacks Group was selected by Italy in 'December' to conduct exclusive negotiations on the sale Acciaierie d'Italia, a bailed out steel company. Flacks stated that "our main interest in Italy is now, but we're interested in major companies and, if talks about an acquisition...

Due to widespread flight cancellations and airspace closures, the Middle East conflict has affected India's exports of gems and jewellery, as well imports of rough diamonds from United Arab Emirates. Dubai, which is a major "global hub" for polished and rough diamonds, and bullion has suspended many cargo and passenger flights. This has affected trade flows, and the shipments of essential raw materials and exports, according to industry officials. Vipul Shah is the managing director of Asian Star, one of the leading diamond exporters. Nearly a quarter of India’s annual gems, jewellery and watches exports totaling around $30 billion come...

In an alarming week dominated by a?Middle East conflict, the gold market made a bizarre move. Investors did not rush to buy gold but instead rushed for dollars, selling anything that had a speculative edge before the attacks last weekend. After the attacks on Iran Saturday, the initial demand for precious metals waned rapidly. On Tuesday there was a dramatic reversal with silver and gold both dropping by as much as 10 percent. One of the main reasons for the gold price's decline was the return of the dollar’s "safety" bid, which had seen the greenback rise this week despite...

Two people who are familiar with the discussions say that Japan and India are in talks to explore rare earth deposits together in Rajasthan's arid state. Tokyo is looking to reduce its reliance on China as a source of magnet manufacturing supplies. India's Mines minister G. Kishan Reddy announced last month that three hard rock deposits of rare earth oxides containing 1,29 million metric tonnes had been identified in Rajasthan state and Gujarat in western India. Sources directly involved in decision-making said that Tokyo expressed interest in the Rajasthan deposits, and planned to send experts there. The sources declined to...

India and Canada aim to conclude a free-trade pact before the end of the year, said Prime Minister Mark Carney on Monday, during his 'first visit to New Delhi. The two countries are trying to overcome years of diplomatic friction in order to restore economic ties. Narendra Modi, Indian PM, said during a joint appearance with Carney that he and Ottawa hoped to increase their bilateral trade from $9 billion to $50 billion between 2030. The Indian Foreign Ministry added that the two sides had?agreed on the terms of reference for a comprehensive economic relationship. Both sides confirmed that they...