Asian markets slide on fears of prolonged U.S. Iran war

MG News September 11, 2026 (MLN): Asian markets came under heavy pressure on Friday, led by sharp declines in South Korea and Japan, as investors assessed the possibility of a prolonged U.S.-Iran conflict and its impact on oil prices, inflation and global interest rates. South Korea's Kospi fell around 2.7%, with heavyweight technology stocks SK Hynix and Samsung Electronics declining 4% and 3.8%, respectively. The small-cap Kosdaq also dropped more than 2%, according to CNBC. Japan's Nikkei 225 declined 2.6%, while the broader Topix index fell 1.86%. Australia's S&P/ASX 200 slipped 1%, while Hong Kong's Hang Seng Index was down 1.4%. Mainland China's CSI 300 declined 0.9%. Japan's Nikkei 225 futures had pointed to further weakness before the open, with Chicago and Osaka contracts last quoted at 63,600 and 63,540, respectively, against the previous close of 65,270.95. Hang Seng futures stood at 24,701 compared with the previous close of 24,954.47, while S&P/ASX 200 futures were at 8,733 versus the previous close of 8,819.4. Investor sentiment remained fragile after reports that senior White House advisers had discussed with President Donald Trump the possibility that the Iran conflict could continue beyond his current term, potentially lasting past January 2029. The reported assessment contrasts with Trump's recent comments that the conflict could end soon after the U.S. midterm elections. He also said oil and gasoline prices could decline following the elections. In the United States, stock futures were little changed overnight ahead of the release of August consumer price index data. S&P 500 futures edged higher, while Dow Jones futures were down 11 points and Nasdaq 100 futures gained less than 0.1%. U.S. equities extended their losing streak on Thursday, with the Dow Jones Industrial Average falling more than 300 points, or 0.6%, while the S&P 500 declined 0.6% and the Nasdaq Composite lost 0.7%. The three major indexes have now recorded four consecutive sessions of losses. Oil prices remained a major source of pressure, with West Texas Intermediate crude futures climbing above $100 per barrel on Thursday. Brent and WTI both settled at their highest levels since May 19, amid continued fighting between the United States and Iran. Higher oil prices also pushed Treasury yields upward, with the 10-year U.S. Treasury yield rising above 4.95% to its highest level since October 2023. Markets are now focused on August's U.S. consumer price index report, due Friday. Economists surveyed by Dow Jones expect consumer prices to rise 0.4% month-on-month, with annual inflation reaching 3.4%. The inflation reading will be closely watched ahead of the Federal Reserve's September 16 policy meeting, particularly after Thursday's producer price index showed wholesale prices rising 0.4% month-on-month and 5.4% year-on-year. Copyright Mettis Link News