SYDNEY, March 27: Asian stock markets fell sharply on Friday, following global losses as tensions in the Middle East intensified. Brent crude futures dropped 1% to $107.07 a barrel, while Wall Street futures rose slightly in Asia.
U.S. President Donald Trump extended his deadline for potential strikes on Iranian power plants, but concerns over a possible ground war and blocked shipping routes in the Strait of Hormuz remained high. Iran rejected a U.S. peace proposal as unfair.
The MSCI Asia-Pacific index fell 1.4%, with Japan's Nikkei down 1.3% and South Korea's KOSPI plunging 3%. Citi analysts warned that worsening Middle East conflicts could slow global growth below 2% this year.
Global bond yields climbed as inflation fears grew. Japan's 10-year yield rose 4 basis points to 2.31%, while Australia's jumped 7 bps to 5.076%. The U.S. dollar strengthened as investors sought safe-haven assets.