The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0813 GMT - The Middle East conflict has started to affect Japan's closely watched annual wage negotiations, clouding the outlook for whether the positive cycle of higher pay leading to more spending and mild inflation will continue. Some oil-related firms have requested a delay in finalizing wage talks in the wake of heightened geopolitical risks, a labor union official says. Preliminary data from Japan's largest labor union group shows its members secured wage increases of 5.26% on average. That is slightly higher than the 5.25% gain recorded in the final results for last year, but lower than the preliminary 2025 figure of 5.46%. (megumi.fujikawa@wsj.com)
0800 GMT - Further increasing exposure to Asian oil proxies could be a gamble as the Middle East conflict becomes prolonged, say DBS Group Research analysts in a note. A longer conflict could keep oil prices well above $100 a barrel, with the potential to reach $150 or higher over the next two quarters in upside scenarios, they say. Volatility in crude prices makes it difficult to value stocks based on $90-$100 oil, they say, a challenge also reflected in the relatively muted share-price performance of global oil majors since the conflict started. The analysts recommend staying invested in upstream and integrated oil stocks such as PetroChina, Cnooc and PTT Exploration & Production, but caution further aggressive positioning would be risky. (megan.cheah@wsj.com)
0729 GMT - China Petroleum & Chemical, or Sinopec, is likely to face a mixed earnings environment in the near term, says DBS Group Research's Pei Hwa Ho in a note. The Middle East conflict has driven crude oil prices higher, which should provide some upside to the Chinese energy major's upstream segment, the analyst says. However, its downstream-heavy portfolio could see pressure on its refining and petrochemical margins. Elevated crude costs, structural demand softness in China and ongoing petrochemical oversupply are expected to constrain the company's profitability, she adds. She prefers upstream peers Cnooc and PetroChina for their better risk-reward profiles. The analyst cuts her 2026-2027 earnings estimates by 24%-26%. DBS is reviewing its rating and target price. The stock is down 3.2% at HK$4.53. (megan.cheah@wsj.com)
0615 GMT - Asia-Pacific's growth is expected to slow this year amid a mix of external threats, Moody's Analytics economists write in a commentary. The Middle East conflict has pushed up commodity prices and raised inflation risks. Most Asia-Pacific economies also rely heavily on energy imports, with Japan, South Korea and Taiwan, particularly dependent on imported fossil fuels. Additionally, the region faces tariff uncertainty and has been dependent on exports. "With access to the U.S. market becoming more difficult, the imbalance leaves the region exposed," the economists say. Moody's Analytics expects growth across the Asia-Pacific region to slow to 4% in 2026 from 4.3% in 2025. (amanda.lee@wsj.com)
0536 GMT - Asian currencies mostly weaken against dollar during the regional trading session, as high oil prices spurred by the Middle East conflict stoke fears of slower economic growth in the region. The Iran "crisis is already acutely affecting Asia economies," MUFG Bank's Michael Wan says in a report. If this drags on further, it will probably lead to energy shortages across the Asian region, the senior currency analyst says. The dollar rises 0.2% to 93.9240 rupees after earlier touching a record high of 93.9740 rupees, LSEG data show. The dollar is also 0.2% higher at 159.48 yen and up 0.2% at 1,508.20 won. (ronnie.harui@wsj.com)
0308 GMT - Asia's reliance on imported energy leaves it more exposed to a longer period of higher oil prices, compared with other regions, Capital Economics' Gareth Leather writes in a note. About 80%-90% of energy flows transiting the Strait of Hormuz have historically been headed for Asian markets. Asia has already seen higher crude and refined products prices, with the Singapore diesel benchmark up around 140% since the start of the war, he says. Sri Lanka, the Philippines and Pakistan will be hit the hardest, as they are heavily dependent on imported energy from the Middle East and have limited fiscal space to cushion the shock.(amanda.lee@wsj.com)
0241 GMT - Consumer prices in Southeast Asia will likely be pushed higher by surging energy costs, as the region is highly dependent on Middle Eastern oil and gas, Maybank analysts write in a research report. "The Middle East conflict threatens to unleash a stagflationary shock on the global economy and Asia," they say. The Philippines and Indonesia are highly sensitive to persistent oil price shocks, with energy accounting for a significant share of their CPI baskets. Supply disruptions and rising energy costs will also fan inflation, worsen current account balances and intensify fiscal pressures for most Southeast Asian countries. (amanda.lee@wsj.com)
2121 GMT - Jefferies's price targets on Ampol and Viva Energy rise after Australia's government resets the Fuel Security Services Payment. Payment now starts at A$0.10 per liter, equivalent to around US$11.10 a barrel. That's higher than 6.4 Australian cents per liter, or US$7.22 per barrel, on offer before. Analyst Michael Simotas says the change is positive but probably won't be needed, given a very strong refining backdrop. "More important, it reinforces crucial importance of Australia's last two refineries to fuel security and positions Viva and Ampol well to negotiate favorable long-term solution," Jefferies says. It sees a path to something like a regulated return on refinery capital, which would be positive for valuations. Jefferies's price target for Ampol rises 14% to A$36.50/share, and lifts 16% to A$2.20/share for Viva. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
March 23, 2026 04:20 ET (08:20 GMT)
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