If oil prices stabilize at $85, Singapore, which is heavily dependent on energy imports, will suffer a 1.5 percent drop in GDP, and Taiwan and Hong Kong will also face negative shocks of 1.2% and 0.8%. In contrast, China, due to its large economy and diverse energy structure (high self-sufficiency rate of coal), has been the least affected in Asia (only about -0.1%), showing strong resilience against falling.
Jardine Matheson's flagship property company announced its full-year results, successfully turning losses into profits, earning $1.26 billion (about HK$9.8 billion) and its outlook for the future is surprisingly positive. Chairman John Witt concluded: "Despite uncertainty about the macroeconomic conditions in the group's major markets, I believe our strategy of focusing on ultra-high-end commercial real estate in Asian gateway cities will continue to benefit from the global trend of 'risk aversion' and achieve long-term sustainable growth."
Recently, the Financial Secretary said that under the geopolitical situation, global capital aversion has led to a lot of US capital flowing into Hong Kong."
The energy ministers of the Group of Seven countries will hold a video conference on Tuesday morning to discuss whether to release oil reserves in response to supply disruptions triggered by the war with Iran, CNBC reported. G7 finance ministers met Monday to discuss releasing reserves, but made no decision. The G-7 member countries include Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. A source said the US considered it appropriate to release 300 million to 400 million barrels of crude oil (25-30 per cent of its 1.2 billion barrels of crude reserves).
High oil prices may be a double-edged sword for the United States, but for Asia's energy-dependent manufacturing powers, it is an unmitigated disaster. This has led to an epic exodus of foreign capital in the Asian market.
Trump spoke out on Truth Social: "When the Iranian nuclear threat is completely destroyed, short-term oil prices will fall back quickly... That is a very small price for the security and peace of America and the world! The subtext of this statement is that American policymakers are now acquiesced, even happy to see the destruction of the Middle East's energy infrastructure, if it is to solve Iran once and for all Should we persist ?