Stocks Decline on Mideast Tensions, Havens Rally – Asia Market Wrap

Fresh turmoil in the Middle East shook global markets, causing equities to fall as oil and haven assets such as Treasury bonds and the dollar surged.

Treasuries rose, lowering the 10-year yield by much as 14 basis points. The dollar index increased by up to 0.6%, while other safe havens such as the Swiss franc, yen, and gold climbed.

According to two US sources, the actions occurred as Israel conducted a missile assault on Iran less than a week after Tehran’s rocket and drone onslaught, heightening concerns about a wider Middle Eastern battle. However, markets reversed some of their risk-off swings when Iran declared its Isfahan nuclear plant secure.

Oil prices increased by more than 4%, with Brent oil rising above $90 per barrel before falling down below that level. A credit default swaps index for Asia outside Japan was also on track for its largest daily climb in more than eight months.

Futures contracts for the S&P 500 and Nasdaq 100 fell over 1% after the actual benchmarks fell for the sixth consecutive day on Thursday, as expectations of a Federal Reserve interest rate decrease were repriced. Asian stocks fell on Friday, including those in Japan, South Korea, Australia, and Hong Kong.