Asia Stocks Slide, Gold Rises

Asian shares slumped and gold prices rose on Monday as risk sentiment took a hit after Iran's retaliatory attack on Israel stoked fears of a wider regional conflict, keeping traders on edge, as reported by Rae Wee for Reuters.

The escalating tensions sparked a flight to safety, sending gold rising 0.51% to $2,356.39 an ounce and the safe-haven dollar broadly higher, extending its 1.6% rise from last week.

The dollar scaled a fresh 34-year high against the yen on growing expectations that sticky inflationary pressures in the United States will keep rates higher for longer. Markets in Asia began the week on a cautious footing.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7% after Iran launched explosive drones and missiles at Israel in retaliation for a suspected Israeli attack on its consulate in Syria on April 1, marking Iran's first direct attack on Israeli territory.

The threat of open warfare between the arch Middle East foes and dragging in the US has left the region on tenterhooks.

US President Joe Biden warned Prime Minister Benjamin Netanyahu that the US will not take part in a counter-offensive against Iran. Israel stated that "the campaign is not over yet." Japan's Nikkei slid more than 1%, while Australia's S&P/ASX 200 index lost 0.6%.

Hong Kong's Hang Seng Index slumped 0.8%. The escalating tensions also sparked a flight to safety, sending gold rising 0.51% to $2,356.39 an ounce and the safe-haven dollar broadly higher, extending its 1.6% rise from last week.