Asian stocks extend global rout; bonds hammered as war drags on
Asian stock markets were swept up in a global rout on Friday, tracking Wall Street lower as the threat of a protracted energy shock out of the war-torn Middle East sent borrowing costs spiralling higher. Investors took a modicum of comfort from U.S. President Donald Trump’s decision to extend his ultimatum to strike Iranian power plants by 10 days, after pushing back his initial 48-hour deadline by five days. Brent crude futures fell 1% to $107.07 a barrel having jumped nearly 6% overnight. However, movement in oil prices was small and reports that Trump was considering sending more troops only added to concern about the war escalating into a ground conflict, with no certainty that the Strait of Hormuz could be reopened to shipping soon.