Singapore, 2 September 2026 – Asian equities opened sharply lower as renewed United States strikes on Iran pushed oil prices higher and a global government-bond selloff spilled into regional markets. The reaction showed how quickly a geopolitical shock can tighten financial conditions across Asia through energy costs, sovereign yields, currencies and expectations for United States monetary policy.
The broad Asia-Pacific equity index excluding Japan fell 0.8% in early trading. South Korea’s KOSPI dropped 3% at the open, while Japan’s Nikkei 225 declined 2.2%. The scale of those moves reflected a wider retreat from risk after investors reassessed the inflation consequences of disrupted energy flows and the possibility that central banks may need to keep rates higher.
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