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

September 2, 2026 (MLN): Asian markets fell sharply on Wednesday, extending Wall Street’s losses as surging oil prices, rising bond yields and intensifying Middle East tensions weighed on investor sentiment.

Japan’s Nikkei 225 declined 2.80%, while the broader Topix fell 2.18%. South Korea’s Kospi dropped 3.59%, with the small-cap Kosdaq down 1.49%.

Australia’s S&P/ASX 200 declined 1.17%, while Hong Kong’s Hang Seng Index fell 0.96%. Mainland China’s CSI 300 also shed 1.25%, according to CNBC.

The declines came after U.S. equities suffered their third consecutive session of losses, with the Dow Jones Industrial Average falling more than 400 points and the Nasdaq Composite losing around 1% as technology stocks came under pressure.

Oil prices climbed above $90 per barrel on Tuesday, reaching their highest level since late July, after the U.S. launched another round of military strikes against Iran.

The escalation has raised concerns about further disruption to shipping through the Strait of Hormuz and a broader expansion of the conflict.

The U.S. Central Command said its latest strikes followed attempted attacks by Iran’s Islamic Revolutionary Guard Corps against commercial shipping in the Strait of Hormuz and U.S. service members.

Separately, the U.K. Maritime Trade Operations Centre reported that a tanker was hit by three unknown projectiles while transiting the Strait of Hormuz on Monday.

Rising Treasury yields added to pressure on global equities, with the U.S. 10-year Treasury yield reaching its highest level since early 2025 on Tuesday. The move has intensified concerns about a broader global bond-market selloff and its potential impact on equity valuations.

U.S. stock futures were largely subdued early Wednesday, with Dow futures gaining 14 points, while S&P 500 futures were marginally lower and Nasdaq 100 futures slipped 0.3%.

Investors are now awaiting August private payrolls data from ADP, along with factory earnings data and the Federal Reserve’s Beige Book, for further clues on the U.S. economic outlook and interest-rate trajectory.

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