Stocks slide as Middle East conflict fans inflation fears

Stocks resumed their ​selloff and the dollar strengthened in early Asian trading on Tuesday as investors considered the implications ‌of US and Israeli strikes on Iran on energy prices and the global economy. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1% to extend losses for a second day, led by a 2.5% tumble in Korean shares, while Tokyo’s Nikkei 225 slumped 0.8%. S&P 500 ​e-mini futures were down 0.2%. “Economic policy uncertainty was already elevated and now with the Iran conflict, the geopolitical ​risk is expected to rise too,” said Rupal Agarwal, Asia quant strategist at Bernstein in ⁠Singapore. “Last time both spiked was in 2022 during the Russia-Ukraine conflict, which didn’t work well for Asian markets.” Stocks on ​Wall Street stabilised after a volatile session on Monday which saw the S&P 500 rally from an early selloff to close ​flat and the Nasdaq Composite climb 0.4%, as investors bought the dip in markets after the conflict in the Middle East spilled over into Lebanon.