Asian markets fall on rising Iran conflict tensions

Mettis Global reported that Asian equities slid on Tuesday as worries over renewed escalation in the Middle East unsettled investors across the region. Japan's Nikkei 225 dropped 0.91%, while the Topix index was little changed, and South Korea's Kospi and the small-cap Kosdaq each fell more than 1% in early trading. Australia's S&P/ASX 200 eased 0.36%, a move the publisher attributed to CNBC.

Higher crude costs, pushed up by growing Middle East friction, also weighed on sentiment before the opening bell. Nikkei 225 futures signalled a weaker start, with the Chicago and Osaka contracts trading below the prior close of 66,311.93, while Hang Seng futures stood at 25,346 against a last close of 25,566.99. The weakness followed reports that US President Donald Trump threatened further strikes on Iran after Tehran launched missiles at two US air bases in Jordan, a response to a US strike on Larak Island.

Wall Street finished August on a soft note, as the Dow dropped over 370 points on Monday when crude's climb pushed borrowing costs up. That followed a US attack on a pair of rocket launchers on Larak Island. Goldman Sachs traders said investor unease was growing even though the market sat within 115 basis points of its record levels, and that portfolio risk allocations showed the caution in practice rather than only in surveys.