Following Iran’s attack on Israel, stock markets in South Korea, Hong Kong, Australia, and Japan all go down.

Asia’s stock markets have crashed after Iran launched a barrage of missiles and drones at Israel over the weekend, making people more afraid of a wider war in the already tense region.

Tel Aviv said the attack was a reaction to an earlier attack on its embassy in Syria. Israel called it an escalation of hostilities, but analysts said traders were still hopeful that the crisis could be contained.

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That tiny bit of hope helped bring down the price of oil.

More than 300 ballistic and cruise missiles, as well as attack drones, were fired at the United States on Saturday. Most of them were shot down by air defenses, which added to worries about the future of interest rates in the US after more inflation and jobs figures that beat expectations.

Iran told the UN that the attack was a “legitimate” defensive reaction to the attack in Damascus on April 1 that killed seven Revolutionary Guard members from Tehran, two of whom were generals.

It also said on social media that “the matter can be deemed concluded,” but it warned that “if the Israeli regime makes another mistake, Iran’s response will be much harsher.”

Defense spokesman for Israel Daniel Hagari called it “a severe and dangerous escalation.”

While some experts said the attack wasn’t meant to cause a war, others said it was meant to show how strong Iran was without started one.

It was also said that US President Joe Biden told Israeli Prime Minister Benjamin Netanyahu to “take the win” and not launch a strike.

Still, Redmond Wong of Saxo said, “All eyes are still on what Israel will do next, and markets are likely to be volatile tomorrow due to any geopolitical news.”

Monday, Asian markets mostly fell, but they didn’t lose as much as they had earlier.

Tokyo, Singapore, Mumbai, Taipei, and Manila all went down by at least 1%. Hong Kong, Seoul, Sydney, and Wellington also went down.

Shanghai’s price went up by more than 1% after China announced new rules for the market on Friday. One analyst said these rules could help Shanghai’s long-term success.

US futures went up after going down sharply on Friday as buyers were getting ready for the weekend.

As Hebe Chen of the IG Group put it, “the market’s quiet response is probably due to the very complicated mood in the market at this point.”

The people in the market are still holding out hope that what happened over the weekend was an isolated incident. They are also not letting go of their hopes for what might happen next.

For now, worries about things getting worse have subsided, so oil prices went down. However, experts say they could go back up above $100 if the situation gets worse.

Helima Croft of RBC Capital Markets said, “This war may move down the escalation ladder if the Israeli government does what the White House tells them to do and doesn’t take retaliatory action.”

The general lack of interest in taking risks made the US dollar stronger against its major peers. It also hit a new 34-year high against the yen, which put Japanese officials in the spotlight after they said they were ready to help their currency.

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