Asia Stocks Drop as Iran-Israel Tensions Rise and Crude Oil Surges on Supply Risks

Asian stocks fell sharply as markets digested the impact of Iran’s missile strike on Israel. Fears of an escalating conflict rippled across global markets, prompting traders to reduce risk exposure and seek safety in assets like gold, U.S. Treasuries, and the U.S. dollar. Japan’s Nikkei dropped in early trading, reflecting the broader sell-off, while South Korea’s KOSPI fell. Australia’s benchmark was more stable but still lost. Across the region, MSCI’s broad index of Asia-Pacific shares fell, as traders absorbed the implications of a potential conflict in the Middle East. With Hong Kong markets closed and mainland China on holiday for the week, volumes were lower, but the pressure on shares was clear. U.S. stock futures also reflected this cautious mood, with the S&P 500 futures falling after the cash index dropped in the previous session.

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