SINGAPORE: A selloff in stocks deepened and the dollar strengthened on Tuesday as investors considered the implications of US and Israeli strikes on Iran on energy prices and the global economy. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.9 percent to extend losses for a second day, led by a 7.2 percent plunge in Korean shares as the country reopened from a holiday with its biggest one-day decline since August 2024. Tokyo’s Nikkei 225 tumbled 3.1 percent and S&P 500 e-mini futures were down 0.9 percent.

Global investors reacted to the weekend strikes in the Middle East by selling U.S. stocks in futures markets. Some assets may benefit, however.

Oil futures on Monday jumped by over 8%, with West Texas Intermediate futures and Brent trading at $72.52 and $79.04 per barrel respectively.