Asian shares fell and gold prices rose on Monday due to concerns over escalating tensions in the Middle East following Iran’s attack on Israel, Reuters reported.
The US dollar reached a 34-year high against the yen on expectations of sustained inflation in the US.
MSCI’s Asia-Pacific shares outside Japan dropped 0.7 per cent after Iran’s attack on Israel.
The region remains on edge amid fears of a broader conflict. The US President Biden assured Israel that the US would not participate in a counter-offensive.
Market nervousness was evident in Japan’s Nikkei and Australia’s S&P/ASX 200, which both declined, one per cent and 0.5 per cent, respectively.
Gold prices rose more than 0.5 per cent.
Oil prices were relatively stable despite the geopolitical tensions.
US stocks futures rebounded slightly after a recent selloff, with S&P 500 and Nasdaq futures up 0.4 per cent.
European futures showed mixed movements.
Chinese stocks rose after the country’s securities regulator announced new rules to enhance market supervision. The country’s blue-chip index rose nearly two per cent, while the Shanghai Composite index gained 1.2 per cent.
Overall, global markets are closely monitoring the situation in the Middle East and its potential impact on energy markets and inflation.
