The Middle East is a very important region in the world and the crises in the region not only severely effects the stock market as well as the economic situation of the region but also the Asian markets as well. In Asia the oil prices constantly rising and the bloody conflicts in Libya has badly effected the Asian market and recent situation has also created a fear about the oil supply to Europe but as on the other hand Saudi Arabia has made assurance that it would increase its oil output if any problem occur in the oil supply from Libya but it is going to be disastrous for the European countries if any excuse made by Saudi an Government.
Chinese inflation rate hit 4.9 % in February, which was not expected so as a result on Tuesday most of the Asian stock fell as Tokyo’s Nikkie was down 1.09 % and the Sydney, Hong Kong and Shanghai fell 1.09 %, 0.33 % and 0.93 % respectively. On the other hand,New York’s light sweet crude increased 44 cents and sold to $104.82 per barrel on the other hand Brent North Sea crude rose 56 cents and sold to $116.50. Now a days clashes between the Libya forces and the revolutionist has increased severely which really effect the oil pipelines.
There is a prediction given by the analysts that Chinese inflation data will be out in few days which is one of the biggest reason for market nervousness. US stocks market is also in great trouble due to turmoil in Libya as a result the Nasdaq dropped 0.51% and the Dow Jones and SP 500 index decreased by 0.01 %, 0.14% respectively. This is not a good sign for the Asian Market which was struggling after the earthquake of Japan but the recent figures fell it into great trouble.
