Asia stocks tumble as Israel attacks Iran.
Asian equity markets tumbled on Friday as fears over a sudden rise in Middle East tensions following Israel’s strikes on Iran ignited a broad risk-off mood.
U.S. stock index futures slumped in Asian trading on Friday after the news. Investors were also worried about more tariff pressures after President Donald Trump said he could raise auto tariffs soon.
Japan, S. Korea stocks lead losses amid Israel-Iran tensions
Japan’s Nikkei 225 dropped 1.2%, while South Korea’s KOSPI fell 1.3%, and Hong Kong’s Hang Seng index slid 0.8% as investors shunned equities in favour of safe-haven assets and commodities.
The sell-off was triggered by reports of a large-scale Israeli air campaign targeting “dozens” of Iranian nuclear, missile, and military sites early on Friday.
Sirens blared across Israel, and state of emergency protocols were enacted amid expectations of retaliatory Iranian missile or drone strikes.
U.S. Secretary of State Marco Rubio said that Israel carried out its military action against Iran independently, citing self-defence as the driving motive behind the strikes.
US dollar and other safe haven currencies rise.
The U.S. dollar advanced on Friday as investors rushed back into the currency and other safe-haven assets including U.S. Treasury bonds and gold after Israel launched widescale strikes against Iran, sparking Iranian retaliation.
Israel said it targeted a wide range of military targets in Iran, in response to which Iran launched a barrage of drones.
“The geopolitical escalation adds another layer of uncertainty to already fragile sentiment,” said Charu Chanana, chief investment strategist at Saxo.
U.S. and Iranian officials were due to hold a sixth round of talks in Oman on Sunday on Tehran’s uranium enrichment programme. Israel’s ambassador to the United Nations said the government’s determination to strike Iranian targets was an independent decision.
An index that measures the U.S. dollar against six other currencies rose 0.61% and was last at 98.28.
European stocks fall sharply.
European stocks fell sharply Thursday, and crude prices soared, after Israel launched a series of strikes on Iran, igniting concerns over regional escalation and a hit to global growth.
At 03:02 ET (07:02 GMT), the DAX index in Germany dropped 1.4%, the CAC 40 in France slipped 1.2% and the FTSE 100 in the U.K. fell 0.5%, retreating from Thursday’s record closing high.
Sentiment hit by Israel strike on Iran
Israel launched a large‑scale airstrike on Iran early Friday, hitting “dozens” of military and nuclear targets, while a state of emergency was declared across Israel amid warnings of an imminent missile and drone counter‑strike from Tehran.
Iran’s state media also reported that there were unconfirmed reports saying that Israel has killed Iran’s Revolutionary Guards Commander Hossein Salami.
Iran pledged a “harsh” retaliation against both Israel and the United States, while U.S. Secretary of State Marco Rubio said that Israel carried out its military action against Iran independently, citing self-defence as the driving motive behind the strikes.
The White House had earlier warned it would consider military measures should nuclear negotiations fail, with a key response deadline ending Thursday.
The attacks reignited concerns over risks to Middle East oil flows and global growth, which exacerbated the already fragile sentiment driven by global trade uncertainties.
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