Political upheaval in Egypt has prompted massive sharemarket downturns, a spike in global oil prices and undermining of currencies worldwide.
After the ousting last month of Tunisia's president, Zine-al Abidine Ben Ali, the now week-long revolution in Egypt has investors and bourses world-wide jittery as Egyptians demand an end to the 30-year dictatorship of president Hosni Mubarak.
Oil prices, tourism and travel, construction and airline stocks in the region have been hardest hit.
Oil spiked to $US101 ($NZ130) in the United Kingdom yesterday over concern about supplies routed through the 192km Suez Canal.
Egypt's stock exchange lost 16% of its value last week and closed during the weekend.
Elsewhere in the Middle East, the stocks of companies with Egyptian interests were pummeled and the Dubai stock exchange hit a 21-week low, more than 4% down, as were exchanges in Qatar, Kuwait and Abu Dhabi.
The Egyptian pound weakened 0.4% against the US dollar, and the New Zealand dollar has also weakened against the greenback, trading at US77.3 at noon yesterday.
Craigs Investment Partners broker Peter McIntyre said the spiralling price of oil was likely to have the most immediate effect on New Zealand, and could increase food prices.
The Middle East upheavals had already pushed up shipping rates and this could soon have a negative effect.
"There doesn't appear to be any early resolution over there.
"Operation of the Suez Canal will be most closely watched," he said.
Egypt does not contribute a lot in oil but the Suez Canal and Suez-Mediterranean pipeline transport several million barrels a day.
At the same time, investors are worried oil-producing states in the region may also face protests, which is keeping crude prices buoyant, Reuters reports.
While European stocks made some gains, Forsyth Barr broker Suzanne Kinnaird said UK stocks fell as the Egyptian protests began a second week.
She said Tui Travel stocks slid 2.6% as the company cancelled some of its Egyptian holiday packages, while Thomas Cook Group stocks sank 3.1% after it allowed customers to change their destination from Egypt, free of charge.
"The unrest in Egypt put safe-haven assets back in favour, with the yen gaining in early trade, providing additional downward pressure to exporters," Ms Kinnaird said.
The Nikkei fell 1.2% as the Egyptian riots prompted investors to shun riskier assets, she said.
Opec (Organisation of Petroleum Exporting Countries) secretary-general Abdullah al-Badri said Opec was watching the situation in Egypt, but would add more supply to the oil market only if there was a real shortage.
Britain's top share index fell on Monday, but losses were limited by gains from heavyweight energy issues as the crude price firmed, Reuters reported.
At the close, the FTSE 100 was 18.43 points, or 0.3%, lower at 5862.94, having shed 1.4% on Friday when worries over the situation in Egypt intensified.
International banking group HSBC said it had set up continuity plans for its Egypt business after authorities there said the country's banks would be closed for a third day yesterday.
"The bank has robust continuity plans in place to enable business to continue through disruptions, and these have been successfully activated," HSBC said on Monday.
During the weekend, the governor of Tunisia's central bank said the country was back in business, welcoming back investors.
Mustapha Kamel Nabli, appointed governor last week, said at the World Economic Forum last Saturday the mere fact he was there was a clear indication that "things are under control economically".
He pledged that corruption and cronyism in the North African nation would be replaced by transparency.
Vodafone boost in NZ
Vodafone has boosted its Auckland call centre staff numbers following the temporary and forced closure of its Egyptian-based call centre in the wake of violence in Cairo.
Staff at Vodafone Egypt, one of four international call centres, were asked to stay at home because of the political unrest in Egypt, Vodafone New Zealand director of service Kelly Moore said in a statement yesterday.
"We are in close contact with the two Vodafone New Zealand team members who are working in Cairo ... as of this morning [Tuesday] they have both been evacuated from the country and are safe with their families," Ms Moore said.
Vodafone was aware of 31 New Zealand customers in Egypt using roaming mobiles.
The company had been contacting them to check they were safe and to pass on contact details for local services at the New Zealand embassy and Ministry of Foreign Affairs and Trade in Wellington.
All of their roaming charges were waived.
Ms Moore said Auckland call centre numbers were boosted with support from staff from across the business and suppliers, to provide the people and equipment to "scale up" the Auckland resources.
