Asian Stocks Sink on Mideast Jitters

Asian equity markets tumbled on Wednesday as the escalating war in the Middle East sparked broad-based selling across the region. The conflict widened after Israel struck targets in Lebanon, while Iran intensified missile and drone attacks on Israel, Saudi Arabia, the UAE, Oman, and Bahrain. Rising concerns over the war’s impact on energy prices, inflation, and interest rate expectations further rattled investors. South Korea’s benchmark index, which had outperformed global peers earlier this year on AI-driven optimism, plunged 12% for its steepest drop since the 2008 global financial crisis. Major indexes in Japan also fell nearly 4%, with markets in Australia, China, and Hong Kong likewise posting sharp losses. Elsewhere, safe-haven assets saw strong inflows as risk appetite deteriorated sharply across global markets.