Global market wrap: Asian stocks decline as US-Iran conflict escalates; Brent crude zooms 5%

We are back with quick updates on global developments around stock markets, commodities and companies that you shouldn’t miss today.

Asian stocks started the week on a shaky note as the US-Iran conflict escalated again after fresh strikes.

South Korea’s Kospi index dropped 1.7% on Monday to 6,914, while Japan’s Nikkei index declined 1% to 65,727.

China’s Shanghai Composite index was trading lower by 0.2% at 3,944, while Hong Kong’s Hang Seng Index lost 0.7% to 25,402. Australia’s S&P/ASX 200 also inched down 0.1% to 9,081.

Singapore’s Straits Times was the only outlier, gaining 0.5% to 5,730.

US stock futures fell on Sunday night after the US struck Iranian rocket launchers on Larak Island in the Strait of Hormuz. S&P 500 futures slipped 0.4%, Nasdaq 100 futures shed 0.5%, while futures tied to the Dow were trading lower by 0.3%.

In the regular trading session on Friday, the S&P 500 had closed down 0.25%, the Nasdaq Composite had fallen 0.52%, while the Dow Jones Industrial Average had ended flat.

Oil prices shot up sharply on Monday amid renewed concerns over supply disruptions. The US crude oil futures for October delivery gained 2.4% to $85.33 per barrel by 0034 EDT, while Brent futures for December delivery climbed 5% to at $90.45 per barrel.

Gold prices fell further on Monday after dropping over 3% in the previous session as investors reassessed the Federal Reserve’s rate outlook after chairman Kevin Warsh’s hawkish inflation message.

US gold futures for ​December delivery were trading 1.3% lower at $4,471 per ounce, while spot gold slipped 0.8% to $4,421 per ounce by 0434 GMT.

Here’s a look at the key developments of the day:

Aon nearing $17 billion deal to acquire insurance brokerage firm USI from KKR

Management consultancy firm Aon Plc is close to signing a roughly $17 billion deal, including debt, to acquire insurance brokerage USI from private-equity firm KKR, according to a report. A deal could be announced as soon as Monday, the report added.

KKR bought USI from PE firm Onex in 2017 and has since raised stake in the company to become its largest shareholder in 2023.

The report said that the acquisition would boost Aon’s capabilities in helping midsize businesses and is expected to increase earnings per share as soon as 2028.

John Ternus to take over from Tim Cook as Apple CEO from tomorrow

John Ternus will take over from Tim Cook as chief executive officer (CEO) of Apple with effect from September 1. Stepping into his new role, Ternus won’t have much time before the company begins its annual fall product rollouts.

Cook will become Apple’s executive chairman. Apple had earlier said that the succession was the result of long-term planning and was unanimously approved by the board.

This year, Apple’s lineup will include an unusually ambitious slate of devices like the first foldable iPhone and a smart display that can recognize who’s speaking and tailor content to them.

China’s Shenzhen Longsys aims to raise $6.27 billion in Hong Kong listing

China’s Shenzhen Longsys Electronics announced on Monday that it was seeking to raise up to HK$6.27 billion through a Hong Kong listing.

The Shenzhen-listed semiconductor company said in an exchange filing that it was offering a total of 26.1 million H shares at a maximum offer price of HK$240.60 per share. This converts into a minimum investment of HK$12151.3 per lot of 50 shares. The company’s H shares are expected to begin trading on September 8.

The chipmaker plans to use around 78.3% of the net proceeds from the share sale to enhance its independent research and development and innovation capabilities in key areas including chip design and advanced memory product development.

Shein’s CEO personal wealth takes a hit after IPO

Shein Global Holdings Ltd is set to list in Hong Kong on Tuesday at just over a quarter of the $100 billion it was worth in 2022.

According to a report, Sky Xu’s personal wealth falls to about $8 billion at the listing price compared to $23 billion earlier when the Chinese fast-fashion business was worth more than the parent companies of H&M and Zara.

The decline in Xu’s riches is attributed to factors including tariffs, political scrutiny, growing competition, and poor timing, as investor interest has now shifted to artificial-intelligence companies.

Australian property developer Bathla on the brink of collapse

Administrators of Australian property developer Bathla Group announced in a press conference that they have time until Thursday to find emergency funding for the company and avoid it turning into one of the country’s biggest real estate failures.

The group warned that the business does not have enough money to survive until the end of this week unless it secures urgent funding to pay staff. Some of the company’s 350 staff have not been paid for eight weeks.

Insolvency specialists Teneo were appointed to Bathla last Tuesday as it struggled under the weight of $3.3 billion in debt. The New South Wales (NSW) government has declined to provide a lifeline.