Stocks slumped in Asian trading on Wednesday as a bond market-induced selloff on global markets spilled over into the region, after renewed attacks by the United States on Iran pushed oil prices higher.MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 1.5 percent as South Korea's KOSPI dropped more than 3 percent, while the Nikkei 225 was down 2.6 percent. S&P 500 e-mini futures were down 0.1 percent.
Brent crude futures extended gains into a second day as trading resumed in Asia, rising 1.3 percent to $95.91 a barrel after the US launched a barrage of airstrikes on Iran on Tuesday, which earlier pushed oil prices to a five-week high.
"The threat of further disruptions to the Strait of Hormuz has brought about renewed anxiety over inflation, driving a selloff in stocks across most major markets and a rout in global bond markets," Westpac analysts wrote.
The yield on the US 10-year Treasury bond hit an intraday high of 4.8122 percent, its highest level in almost three years, while the yield on the 5-year Japanese government bond rose to 2.295 percent, its highest level on record.
"September kicked off on a shaky note as developed market government bonds continued to sell off," DBS analysts wrote.
