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Asian stock markets fell sharply because investors worry that the war in the Middle East could increase oil prices. Higher energy prices may cause inflation, affect interest rates and weaken economic growth. South Korea’s stock market dropped more than 11%, and Japan and Taiwan also had big losses. Investors are worried the conflict could last a long time. Many are selling risky shares, especially technology stocks, and moving money into cash and gold. Experts say this is not a crisis, but a careful change in investing. Some investors are reducing risk in their portfolios because the situation looks more unpredictable.
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