Asian equities slumped sharply as the escalating conflict between the US, Israel, and Iran continued to rattle markets. The MSCI Asia Pacific Index fell more than 4%, its steepest drop in almost a year, while South Korea’s Kospi plunged around 12% in its biggest-ever single-day decline after being one of the world’s best-performing markets earlier this year. The selloff reflected growing concern that higher energy prices and geopolitical instability could derail the strong rally seen across the region in recent months.
Oil remained the central focus for investors as fears of supply disruption intensified. Brent crude extended its surge, rising above $82 a barrel after gaining roughly 12% over the previous two sessions — the biggest jump since 2020. While President Trump sought to calm markets by pledging to safeguard shipping through the Strait of Hormuz, uncertainty around the conflict and the risk of a prolonged supply shock continued to weigh on sentiment.
Despite the sharp decline in Asian equities, moves elsewhere were more contained. US futures pointed lower while European futures edged slightly higher, suggesting the selloff may be more regionally concentrated for now. Gold advanced slightly today after yesterday’s selloff, while US 10-year yields ticked up to 4.07% as bond markets stabilised after earlier volatility driven by inflation concerns linked to rising oil prices.
• S&P 500 futures −0.5%
• Nasdaq 100 futures −0.8%
• US 10-year yield +1 bp to 4.07%
• Bitcoin +0.9% to $68,625
• Gold +1.3% to $5,157
• WTI +2.9% to $76.70
