Equity markets across Asia fell sharply at the week’s opening on March 9, with indices in Japan and South Korea leading regional losses following a steep rise in global oil prices, The Business Times reports.

Singapore’s benchmark Straits Times Index (STI) also opened 1.9% lower at 4,755.91 points. On the island, declining stocks heavily outnumbered gainers, with 249 losers versus 37 advancers, after around 166.9mn securities worth approximately $175.3mn were traded.

In addition, banking stocks in Singapore were among the hardest hit in early trading. Shares of DBS Bank fell 1.6%, declining by about $0.67 to $40.24. Meanwhile, OCBC Bank dropped 1.9%, slipping roughly $0.30 to $15.18, while United Overseas Bank (UOB) lost a full 2.3%, decreasing by $0.61 to $26.19.

The sell-off across Singapore and the region came about as crude oil prices surged above the $100 per barrel mark with West Texas Intermediate rising 20.8% to $109.78 per barrel, while Brent crude climbed 16.3% to hit $101.38 per barrel.

Energy-related stocks - as a result - were among the few gainers in early trading. Rex International jumped 13.3%, rising by about $0.018 to $0.154, while Geo Energy Resources also increased 5.4%, gaining roughly $0.019 to $0.365.

In Southeast Asia, Malaysia’s FTSE Bursa Malaysia KLCI was also down 2% as of 9:30 am local time, despite a research note released on March 6 by BMI ranking Malaysia as having the fifth-lowest risk score among 24 emerging markets in terms of potential exposure to the economic fallout from the US–Israel–Iran conflict.

The assessment evaluated factors such as trade disruption linked to the effectively closed Strait of Hormuz, terms of trade, external balances, as well as fiscal and monetary policy resilience.

The report also noted that energy-exporting countries such as Malaysia, seen as up and coming in the region, could benefit from elevated gas prices. In contrast, dedicated energy importers like the Philippines and South Korea may face pressure on their currencies and increased strain on their balance of payments as oil prices remain elevated.