MARKETS: Asian stock markets are falling – the former CEO of Goldman Sachs urges investors to be cautious

Stock markets in Asia were down on Thursday as tensions in the Middle East continued. Iran reportedly rejected the US ceasefire proposal on Wednesday.

At the time of review, Japan’s Nikkei was down 0.8 percent and the broader Topix was also down 0.8 percent.

In mainland China, the CSI 300 was down 1.2 percent. Hong Kong’s Hang Seng was down 2 percent.

South Korea’s Kospi index was down 3.3 percent.

Goldman Sachs former CEO Lloyd Blankfein warns investors against underestimating the long-term effects of the Middle East conflict. He stated in an interview with CNBCthat the consequences of the war related to Iran will be felt in the market for a long time, even if a quick solution to the crisis is found.

Blankfein emphasizes that there is excessive confidence in the market. According to him, it is just as risky to build an investment strategy on the assumption of a quick solution as to believe that there will be no solution at all.

He urges investors to avoid investments based on strong views and to prefer a more cautious, flexible approach. According to him, in the current situation, risk management and the ability to react to rapidly changing conditions are emphasized.

The South Korean government said it had established an emergency task force to prepare for the possible economic and geopolitical effects of a war in the Middle East. Prime minister Kim Min-seok warns that the government must also prepare for worst-case scenarios.

The task of the new emergency economic working group is to coordinate cooperation between ministries and ensure that decision-making remains fast and consistent in a crisis situation. The government aims to strengthen its ability to react to possible market disturbances and supply chain problems.

According to the Prime Minister, the country must prepare for a prolonged situation.

President of the United States Donald Trump’s and the President of China Xi Jinpingin inter- a meeting is arranged in Beijing on May 14 and 15, the White House announced on Wednesday. The meeting had previously been postponed due to the war in the Middle East.

On the oil market, the price of Brent oil was rising on Thursday. At the time of review, the price was around $104 per barrel. The price of West Texas Intermediate oil, on the other hand, was 92 dollars per barrel.

At 8:20 a.m. one euro gave 1.15 dollars, 184.3 yen, 0.86 pounds and 10.8 Swedish kronor. The dollar was 159 yen and the pound was 1.33 dollars.

Based on index futures, a bearish opening is expected for the United States on Thursday. A decline is also expected in Europe.