Asian Stocks Slide as Yen Surges and Iran Tensions Lift Oil Prices

Asian stocks fell on Tuesday as a sharp surge in the yen, mixed economic data and rising geopolitical tensions weighed on investor sentiment. The yen climbed as much as 1% to 152.89 per dollar, its strongest level since February 18, as investors unwound an estimated $2.35 trillion in yen-funded carry trades. Japan’s Nikkei 225 fluctuated before dropping 1.7%, while MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.5%.

Geopolitical tensions in the Gulf added to market pressure, with oil prices rising for a third consecutive session after Iran threatened retaliation against the United States and said it had fired an advanced missile at U.S. warships. Brent crude rose 1.4% to $98.34 a barrel. Meanwhile, Japan’s revised second-quarter GDP showed faster growth than initially estimated, while real wages rose 2.4% in July, strengthening expectations that the Bank of Japan could accelerate monetary tightening.

U.S. Treasury yields also moved higher, with the 10-year yield rising 1.6 basis points to 4.798%, while traders continued to price roughly a 60% probability of a 25-basis-point Federal Reserve rate hike at its September meeting. China reported stronger export growth in August, supported by demand for high-tech and AI-related products. Copper reached a record $14,597 a metric ton, while gold remained steady at $4,404.29 an ounce. Bitcoin fell 1% to $78,458.04 and ether declined 1.1% to $2,468.37.

Pic Courtesy: google/ images are subject to copyright