Institution: Middle East conflict and oil price volatility threaten Asian stock markets

Golden Ten Data reported on March 12 that Eli Lee, Chief Investment Strategist at Singapore Bank, stated in a report that disruptions in oil transportation through the Strait of Hormuz, damage to Middle Eastern infrastructure, and increased volatility in crude oil prices could translate into greater risks for stock market valuations. This has prompted Singapore Bank to downgrade its asset allocation for Asian equities (excluding Japan) from "overweight" to "neutral." Within the region, Lee remains optimistic about the mainland China, Hong Kong, and Singapore markets. Lee specifically pointed out that China has accumulated one of the world's largest strategic crude oil reserves, enabling it to buffer the impact of export disruptions through the Strait of Hormuz. He added that oil and gas account for only about 4% of China's power structure, far lower than the average of 40%-50% in many Asian countries and regions.