Asian shares largely declined amid a sharp escalation in tensions in the Middle East.
In Tokyo, the Nikkei 225 dropped 2.3% to 37,768.79, extending its losses after the ruling Liberal Democratic Party selected Shigeru Ishiba as the new government leader.
Oil prices continued to rise following Iran’s missile attack on Israel, increasing concerns about potential supply disruptions.
This development overshadowed a positive report from the US, which showed an unexpected increase in job openings in August, signaling continued strength in the American job market.
In contrast, Hong Kong’s Hang Seng surged 4.9% to 22,173.61, driven by investor optimism following Beijing’s recent measures to stimulate the Chinese economy.
Australia’s S&P/ASX 200 edged down 0.2% to 8,196.70, while South Korea’s Kospi lost 0.8% to 2,572.80.
However, trading activity across the region was light, as mainland Chinese markets remained closed for a weeklong national holiday.
On Wall Street, stocks also fell on Tuesday. The Dow Jones Industrial Average dropped 0.4%, the S&P 500 slid 0.9% to 5,708.75, and the tech-heavy Nasdaq Composite Index declined 1.5% to 17,910.36.
In the bond market, the yield on 10-year US Treasury notes dipped to 3.74% from 3.78% on Tuesday.
