Global Markets in Turmoil as Middle East Tensions Spark Sell-Off — Asia Leads Sharp Declines

Global financial markets were thrown into uncertainty on Monday as rising tensions in the Middle East triggered a wave of risk-off sentiment across Asia, Europe, and U.S. futures trading. Investors reacted sharply after reports that Iran fired missiles toward Israel, breaking a fragile ceasefire and raising fears of a broader regional conflict.

U.S. stock futures opened the week mixed, reflecting investor caution. Dow futures slipped slightly, while S&P 500 and Nasdaq futures posted modest gains. The uneven performance came after a volatile week on Wall Street, where tech-heavy indices suffered heavy losses amid concerns over inflation, interest rates, and stretched valuations in artificial intelligence-driven stocks.

In Asia, markets bore the brunt of the global sell-off. South Korea’s Kospi index plunged more than 8%, marking one of its steepest single-day declines in recent months. Japan’s Nikkei and Hong Kong’s Hang Seng also fell sharply, as technology and semiconductor stocks led losses across the region. Heavyweights like Samsung Electronics and SK Hynix dragged the Korean market lower as foreign investors continued to pull out funds.

The turmoil spread into Europe, where major indices opened lower. The pan-European Stoxx 600 slipped, with tech stocks extending losses while energy shares saw modest gains due to rising oil prices. Brent crude and U.S. West Texas Intermediate both surged over 3%, reflecting fears that escalating conflict could disrupt global supply routes and energy stability.

Looking ahead, investors are bracing for a data-heavy week that could further shape market direction. Key inflation reports, including the U.S. Consumer Price Index and Producer Price Index, are expected midweek, while attention is also turning to major corporate developments and upcoming IPO activity that could test investor confidence in risk assets once again.

source: cnbc