Asian markets tumble as US-Iran fighting lifts oil and bond yields

Stocks in Asia slid on Wednesday as a selloff in global bond markets spread across the region after new US attacks on Iran lifted oil prices, Business Recorder reported. The MSCI index covering Asia-Pacific shares outside Japan fell 1.5%, while South Korea's KOSPI shed more than 3% and Japan's Nikkei 225 lost 2.6%. S&P 500 e-mini futures were only 0.1% lower in early trade.

Brent crude gained 1.3% to $95.91 a barrel, extending its rise into a second session after US airstrikes on Tuesday had earlier driven prices to a five-week high. Westpac analysts warned that further disruption in the Strait of Hormuz was stoking concern about inflation, while the yield on the US 10-year Treasury touched 4.8122%, the highest in nearly three years.

Traders expect the Federal Reserve to raise rates at its meeting ending September 16, with futures pricing a 67% chance of a quarter-point increase, up from 39.6% a week earlier, according to CME Group's FedWatch tool. Gold fell 0.8% to $4,295.70 an ounce, bitcoin slipped 0.6% to $76,979.55 and ether lost 0.9%, reaching $2,397.78.