AI chips or Hormuz ships?: Assessing Asia’s winners and losers

Asian markets have faced a turbulent period because of the conflict in the Middle East. Oil price spikes and disruption in the Strait of Hormuz led to a sell-off across the region, many of which rely on energy supplies from the Middle East. Growth, inflation and risk premium worries have since affected Asian equity markets. The potential impact of the Strait of Hormuz’s disruption on Asian markets is assessed based on four key factors: energy import dependence, diversification of supply, strategic reserves, and fiscal strength. Which countries could be viewed as relative winners from the...