Middle East escalation triggers sharp selloff across Asia-Pacific markets. Yemen's Houthi movement fired missiles at Israel on Saturday, marking direct involvement in the U.S.-Israeli conflict and escalating tensions into the fifth week of war. The strike sent shockwaves through regional markets. South Korea's Kospi plunged 2.97%, Japan's Nikkei 225 fell 2.79%, and Hong Kong's Hang Seng lost over 1%. Oil prices surged with West Texas Intermediate crude climbing 2.58% to $102.19 per barrel, intensifying inflation concerns. Bank of Japan policymakers discussed accelerating rate hikes due to rising oil prices linked to Middle East developments. U.S. futures also declined, with Dow futures dropping 0.6% ahead of the open. Australia announced a three-month fuel excise cut to ease pump prices.
