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  • Writer's pictureBy The Financial District

Asian Stocks Plummet Following Israeli Attack On Iran

Asian markets witnessed a sharp decline on Friday, April 19, 2024, as reports of Israeli attacks on Iran escalated concerns about a broader conflict in the Middle East, Kevin Buckland reported for Reuters.


The heightened geopolitical tensions between Israel and Iran weighed heavily on investor sentiment.



The MSCI's broadest index of Asia-Pacific shares dropped by 2%, with US stock futures also pointing lower by 1%.


Investors sought safe-haven assets amidst the geopolitical tension, leading to a surge in bond prices and a rally in safe-haven currencies like the yen and the Swiss franc. US long-term Treasury yields dropped significantly, reflecting the flight to safety.



Crude oil prices surged amid worries of potential disruptions in Middle East oil supply, with Brent futures climbing as much as 4.2%. Iran, as the third-largest oil producer in OPEC, became a focal point of concern for the markets.


Bitcoin also experienced a notable decline, dropping to a 1-1/2-month low amidst the risk-off sentiment in financial markets. The cryptocurrency fell by as much as 6.2% before paring losses.



Overall, the heightened geopolitical tensions between Israel and Iran weighed heavily on investor sentiment, leading to widespread selling across Asian markets and driving up demand for safe-haven assets.




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