KOSPI Sinks 3% as Iran Strikes Push Oil to 5-Week High

Asian equities sank in Wednesday's trading as renewed US airstrikes on Iran pushed oil prices higher and triggered a global bond selloff that spilled into the region.

The MSCI Asia-Pacific Index, a broad gauge of stocks outside Japan, fell 1.5%, while South Korea's KOSPI dropped more than 3% and the Nikkei 225 slid 2.6%.

Oil Jumps as Bond Yields Hit Multi-Year Highs

Brent crude rose 1.3% to $95.91 a barrel Wednesday. The gains extended a rally that began after the United States launched fresh airstrikes on Iran on Tuesday. The attack briefly pushed oil to a five-week high.

The strikes renewed fears over disruptions to the Strait of Hormuz.

"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.

DBS analysts added that if the bond rout does not stabilize, policymakers may need more aggressive measures to cap yields.

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