Asian Markets Fall as US-Iran Tensions Lift Oil, Bond Yields

Asian stock markets fell sharply on Wednesday, September 2, as renewed U.S. airstrikes on Iran pushed oil prices to a five-week high and triggered a global bond sell-off that rattled investor confidence. The MSCI Asia-Pacific ex-Japan index declined 1.5 percent, while South Korea’s KOSPI dropped more than 3 percent and Japan’s Nikkei 225 fell 2.6 percent. The sell-off extended a downturn that began after the United States launched a barrage of airstrikes on Iran on Tuesday, September 1. The military escalation heightened fears of disruptions to oil flows through the Strait of Hormuz, a critical global shipping lane. Brent crude futures rose 1.3 percent to trade around $95.