Stock exchanges remained bearish globally as the crude oil reached its highest in 2.5 years on Wednesday triggered by escalating riots in Middle East in Libya. Investors are shifting towards base metals such gold and risk free government bonds due the shortage of global oil production which has created worries about economic recovery.

In Asia, Japan’s Nikkei 225 stock average declined 2.2 percent to 10,513.37 while Hong Kong’s Hang Send Index dropped 1.7 percent to 23,007.29 for the day. South Korean stock market index Kospi reported the correction of 0.7 percent to 1,926.02 levels.

In the Tokyo stock market today the decline was majorly contributed by automobile and electronics sector as Toyota Motor Corp reported the fall of 2.5 percent while Toshiba Corp and Sony Corp plunged 2.2 percent and 2 percent respectively.

Sharp Corp also closed 4.6 percent lower in today’s trading session in reaction to lower ratings by Morgan Stanley of the Sharp’s LCD business.

Airline shares also remained under pressure in reaction to increasing oil prices. Cathay Pacific Airways Ltd declined 2.3 percent while Qantas Airways Ltd fell 2.1 percent. Moreover All Nippon Airways Co Ltd and China Southern Airlines also witnessed the correction of 2.7 percent and 4 percent respectively.

Head of sales trading from CMC in Sydney Mathew Lewis commented, “The trigger, I think, is that the Libyan crisis looks like it is not going to go away as easily as it did in Egypt. Iran is showing a little bit of unrest, there is growing concern that Saudi Arabia is in the middle of that. What would happen to oil prices if there were civil unrest in Saudi Arabia?”

Australia’s S&P/ASX 200 also declined 0.6 percent to 4,797.80 whereas stock exchanges in China, Taiwan and Singapore also closed lower due to global oil scenario.