Asian Shares Slump As Geopolitical Tensions Mount

(RTTNews) - Asian stocks tumbled on Friday after Israel conducted 'pre-emptive' strikes on Iran; targeting several nuclear and military assets.

Israel also declared a state of emergency in anticipation of a missile and drone strike by Tehran and said it has begun intercepting Iranian drones.

The U.S. dollar advanced along with other safe-haven assets including U.S. Treasury bonds and gold.

Oil prices were up more than 5 percent as the escalation of hostilities in the Middle East raised worries about disrupted oil supplies.

China's Shanghai Composite index fell 0.75 percent to 3,377 as Israel-Iran tensions intensified and Sino-U.S. trade optimism waned. Hong Kong's Hang Seng index declined 0.59 percent to 23,892.56 amid tensions over Tehran's rapidly advancing nuclear program.

Japanese markets closed lower, dragged down by exporters and tech stocks. The Nikkei average declined 0.89 percent to 37,834.25 while the broader Topix index settled 0.95 percent lower at 2,756.47.

Toyota Motor fell 2.4 percent and Nissan dropped 1.3 percent as the yen strengthened. In the tech sector, Tokyo Electron and Screen Holdings both plummeted around 4.8 percent

Oil explorers rose, with Inpex rallying 3 percent as global oil prices soared on supply concerns.

Seoul stocks fell for the first time in eight trading sessions following Israel's pre-emptive strike on Iran and lingering trade tensions.

The Kospi average ended down 0.87 percent at 2,894.62. Samsung Electronics, Samsung Biologics, LG Energy Solution and Hyundai Motor declined 1-3 percent.

Australian and New Zealand markets fell as domestic bond yields dipped to a six-week low. Australia's benchmark S&P/ASX 200 slipped 0.21 percent to 8,547.40, extending losses for a second day running. The broader All Ordinaries index closed 0.29 percent lower at 8,770.60.

Across the Tasman, the benchmark S&P/NZX-50 index fell 0.76 percent to 12,552.87.

Overnight, U.S. stocks recovered from an early slide to end modestly higher, buoyed by a strong rally in Oracle shares and data showing that producer price inflation rose less than expected in May.

The dollar hit a three-year low and U.S. 30-year yields approached the 4.8 percent mark after a solid sale of long-term Treasuries.

The Dow gained 0.2 percent and the S&P 500 added 0.4 percent to reach three-month closing highs while the tech-heavy Nasdaq Composite edged up by 0.2 percent.