Asia stocks slide, gold rises as Middle East conflict sparks safety rush
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 there 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 had, late on Saturday, launched explosive drones and missiles at Israel in retaliation for a suspected Israeli attack on its consulate in Syria on April 1.
That marked Iran's first direct attack on Israeli territory.
The threat of open warfare erupting between the arch Middle East foes and dragging in the United States has left the region on tenterhooks. U.S. President Joe Biden warned Prime Minister Benjamin Netanyahu the U.S. will not take part in a counter-offensive against Iran.
Israel said «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 that sent 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. [GOL/]
Oil prices, however, hardly reacted to the news, as traders had largely priced in a retaliatory attack from Iran that would likely further disrupt supply chains. That saw Brent crude futures peaking at $92.18 a barrel last week, the highest level since October.
Brent was last 0.5% lower at $90.01 per barrel, while U.S. West Texas Intermediate crude futures fell
