Stock market today: Asian shares sink as investors brace for Israeli invasion of Gaza

NEW YORK (AP) — Shares fell in Asia as investors braced Monday for an expected invasion by Israel in the Gaza Strip.

U.S. futures edged higher while oil prices were little changed.

Israeli forces, supported by a growing deployment of U.S. warships in the region and the call-up of some 360,000 reservists, have positioned themselves along Gaza’s border and drilled for what Israel said would be a broad campaign to dismantle the militant group.

More than a million people have fled their homes in the besieged enclave in the past week, ahead of the expected invasion meant to eliminate Hamas’ leadership after its deadly Oct. 7 attack.

“Who can blame markets for being jittery,” RaboResearch Global Economics and Markets said in a commentary. “The world now holds its breath as Israel prepares for a full-scale ground invasion of Gaza, with only unseasonal torrential rain delaying the seemingly inevitable.”

The conflict has jolted oil markets, adding to uncertainties already hanging over the global economic outlook. The Gaza region is not a major producer of oil, but the fear is that the violence could spill into the politics around the crude market and eventually lead to disruptions in the flow of petroleum, with broad ramifications for many industries.

On Friday, the price of a barrel of benchmark U.S. crude oil jumped $4.78 to settle at $87.69. Brent crude, the international standard, climbed $4.89 to $90.89 per barrel. Early Monday, U.S. crude oil was unchanged while Brent was up 3 cents at $90.92 a barrel.

In Asian share trading, Tokyo’s Nikkei 225 sank 1.9% to 31,695.15 and the Hang Seng in Hong Kong lost 0.5% to 17,728.35. South Korea’s Kospi declined 1% to 2,431.28.

The Shanghai Composite index was 0.4% lower, at 3,075.38, while Bangkok’s SET skidded 2.1%. Australia’s S&P/ASX 200 was down 0.4% at 7,030.10.

On Friday, U.S. stocks mostly fell as they were buffeted by competing waves of optimism and fear.

The S&P 500 slipped 0.5% to 4,327.78 and the Nasdaq composite fell 1.2% to 13,407.23. The Dow industrials edged up 0.1% to 33,670.29.

Oil prices leaped, and Treasury yields fell after Israel’s military ordered the evacuation of northern Gaza ahead of a possible ground invasion, according to the United Nations, which warned of potentially “devastating humanitarian consequences.”

But several U.S. banking giants at the same time said their profits during the summer were better than feared, which offered hope on Wall Street for an earning reporting season that may deliver the first growth for big companies in a year.

Worries about the war pulled Treasury yields lower, which often happens when investors head for safer investments during times of stress. The yield on the 10-year Treasury fell to 4.63% from 4.70% late Thursday.

Yields also eased after another official at the Federal Reserve said the central bank may be done hiking its main interest rate following a blistering campaign that began early last year.

Helping to support Wall Street were JPMorgan Chase and Wells Fargo, which reported stronger profit for the summer quarter than analysts expected.

JPMorgan Chase rose 1.5% after its profit for the third quarter climbed 35% from a year earlier. It benefited from a rise in interest rates, but its CEO Jamie Dimon also warned that “this may be the most dangerous time the world has seen in decades.”

Wells Fargo rose 3.1% after it likewise topped analysts’ expectations for profit during the summer quarter.

UnitedHealth Group beat Wall Street’s profit expectations, and its stock climbed 2.6%.

Dollar General jumped to the biggest gain in the S&P 500, up 9.2%, after it said Todd Vasos will be returning as CEO.

In currency dealings early Monday, the U.S. dollar fell to 149.39 Japanese yen from 149.55 yen. The euro rose to $1.0529 from $1.0515.