Asian stocks slipped and crude oil climbed past $70 in New York after President Donald Trump scrapped the nuclear deal with Iran. Treasury yields advanced toward 3 percent, helping stoke gains in the dollar against the yen.
Equity benchmarks in Japan and South Korea dipped, though rose in Australia after that country’s government announced tax cuts. Futures in Hong Kong fell. The S&P 500 Index pared losses to close flat and U.S. futures were little changed. West Texas crude rose after a volatile trading session Tuesday as traders digested what the Iran move means for energy supplies. The greenback rose for a fourth session.
The MSCI Asia Pacific Index fell 0.3 percent as of 10:11 a.m. Tokyo time. Kospi index fell 0.1 percent. Australia’s S&P/ASX 200 Index rose 0.3 percent.
Concern about an increase in geopolitical tension is weighing on global sentiment at the same time as concerns spread over the implications of higher Treasury yields and a stronger dollar. Sanctions on Iran could potentially disrupt supplies from OPEC’s third-largest producer and open an uncertain new chapter for the Middle East.