Oil surge drags Australian stocks to their worst day since 2020
Australia’s ASX 200 fell 4.3%, the index’s worst day since March 2020, potentially returning to November-levels and risking a move toward May 2025 levels if losses continue. A spike in crude oil prices (and a rally in gold) is driving risk-off sentiment and could complicate the RBA’s soft-landing path, possibly prompting faster rate hikes. Globally, markets slumped: Korea’s Kospi hit a circuit breaker after about an 8% drop and Japan’s Nikkei fell roughly 7.4%, while S&P 500 futures and Nasdaq futures were lower. Bond yields rose: US 10-year up about 8 bps to 4.21%, Australian 10-year up around 15 bps to 4.99% (the highest since Nov 2023). Geopolitical uncertainty and oil-price momentum are underpinning a broad risk-off mood.