Asian stocks fell on Monday as risk appetite was battered by the U.S. attacking Iran’s nuclear sites over the weekend, marking a potentially dire escalation in the Middle Eastern conflict.
Japanese shares fell in tandem with their peers, although local markets took some support from stronger-than-expected manufacturing purchasing managers index data.
Regional markets were spooked by a spike in oil prices, which factored into concerns of stickier inflation and higher energy costs.
S&P 500 Futures fell 0.3% in Asian trade, although analysts noted that risk assets were proving to be more resilient than expected.
Asian stocks sink as US attacks Iran facilities; oil disruption in focus
Australia’s ASX 200 was among the worst performers for the day, down nearly 0.8% despite slightly upbeat PMI data for June.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.4% and 0.1%, while Hong Kong’s Hang Seng index lost 0.6%. Beijing condemned the U.S. attack and called on Israel to reach a ceasefire in the region.
Gift Nifty 50 Futures for India’s Nifty 50 index fell 0.1%, heralding a weak open, while South Korea’s KOSPI and Singapore’s Straits Times index shed between 0.5% and 0.7%.
The U.S. attacked three key Iranian nuclear facilities over the weekend, marking America’s official entry into the renewed Israel-Iran conflict. President Donald Trump claimed that the strike had done “monumental damage” and had wiped out the facilities, although this could not be immediately verified.
