MSCI's broadest index of Asia-Pacific shares dived 2.3% and U.S. stock futures pointed 1.5% lower following media reports Israeli missiles had hit a site in Iran.
Israeli Prime Minister Benjamin Netanyahu had vowed retaliation earlier this week after Iran launched hundreds of drones and missiles in an unprecedented direct attack on Israel over the weekend. Equity markets were already heading lower before the Middle East headlines, as more robust U.S. economic data spurred additional Federal Reserve officials to signal no rush to lower interest rates.
"A triple whammy of sorts for the markets, as Fed's hawkishness keeps taking a leg up with each passing day and semiconductor earnings have so far fallen short," said Charu Chanana, head of currency strategy at Saxo.Scan QR code to install app
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