Asian markets slide on surging oil, rising yields, Iran tensions

Mettis Global reported that Asian stock benchmarks dropped steeply on Wednesday, following Wall Street's retreat into a third straight losing session. Japan's Nikkei 225 shed 2.80%, the Topix retreated 2.18%, and South Korea's Kospi tumbled 3.59%. Elsewhere, Australia's S&P/ASX 200 eased 1.17%, Hong Kong's Hang Seng slipped 0.96% and China's CSI 300 lost 1.25%, according to CNBC.

Crude prices topped $90 a barrel on Tuesday, their highest point since late July, after Washington carried out another wave of strikes on Iran. Market participants are concerned that shipping through the Strait of Hormuz could face further interruption, and that the confrontation might widen. The unrest followed a Monday incident in which a tanker transiting the strait was struck by three unidentified projectiles.

On Tuesday, the US 10-year Treasury yield rose to its loftiest mark since early 2025, adding to pressure on equities. That move has raised fears of a wider global bond selloff that could weigh on share valuations. Early Wednesday, US equity futures were mixed, and investors are now looking ahead to ADP's August private payrolls figures, factory earnings and the Fed's Beige Book for clues on the economy and interest rates.