Mumbai/IBNS: Oil and safe-haven assets surged after Iran launched a missile attack on Israel, causing US stocks to fall on Tuesday (Oct. 1) as investors sought safety, reports Bloomberg.
According to reports, crude oil climbed 1.5 percent in early Asian trading, adding to Tuesdays 2 percent rise, while bonds, gold, and the US dollar also gained following Irans retaliation for Israels recent strikes on Lebanon.
Israels military reported that many of the missiles were intercepted, while Prime Minister Benjamin Netanyahu vowed a strong response.
Asian stocks in Tokyo and Sydney declined following a 0.9 percent drop in the SP 500, with futures suggesting further losses in the US, Bloomberg reported, adding that the VIX, Wall Streets fear gauge, surged to a level indicating potential market volatility, while bonds in Australia and New Zealand strengthened as well.
Meanwhile, US-listed Chinese stocks surged for a fourth day, though markets in mainland China remained closed for Golden Week.
Trading in Hong Kong is set to resume Wednesday after Tuesdays holiday.
Taiwan will suspend its stock market as Super Typhoon Krathon approaches the island, according to reports.
In the US, the tech sector was hit hard, with Apple and Nvidia both dropping around 3 percent.
The Nasdaq 100 recovered from a 2 percent loss to finish down 1.4 percent.
Geopolitical tensions overshadowed economic data, including a drop in the US ISM price indexthe largest since May 2023and a rise in job openings in August to a three-month high, as per reports.
Treasury yields stayed lower, with the 10-year yield hovering around 3.73 percent.
In US politics, vice-presidential candidates JD Vance and Tim Walz will face off in their only debate of the election season, targeting swing voters ahead of Novembers vote.
After-hours trading saw Nike shares weaken following a revenue report that missed estimates.
Samsung Electronics shares also dipped after reports that the company plans to lay off thousands of workers.
In financial markets, traders are betting on a one-in-three chance the Federal Reserve will cut rates by half a point in November, but BlackRock CEO Larry Fink cautioned against expecting such a significant easing, calling the current market expectations excessive, according to Bloomberg.
Elsewhere, inflation in South Korea slowed more than expected, suggesting the central bank may shift to monetary easing at its next meeting.
In the eurozone, inflation dropped below the European Central Banks 2 percent target for the first time since 2021, fueling expectations of another rate cut by the ECB later this month, as reported by Bloomberg.
