Oil advanced after tensions in the Middle East flared up with Iran firing a barrage of missiles at Israel. Asian stocks gained, led by Hong Kong, as China’s stimulus measures continued to sway investors. Crude extended gains while gold held near a record.
Equities in Japan and South Korea declined following Tehran’s sharp but brief strike in reprisal for Israel’s attacks on Lebanon in recent days.
The Israel Defense Forces said many of the missiles had been intercepted as Prime Minister Benjamin Netanyahu vowed to retaliate.
The broad risk-off mood came as geopolitical tensions racheted up in the Middle East and as traders await further clarity over Israel’s response. The flight to safety has sent oil, haven assets higher and stocks lower.
Meanwhile, Chinese shares overcame cautious risk sentiment, extending a stimulus-induced rally as traders returned from a public holiday, driven by optimism about China’s economy and attractive valuations. Markets in mainland China remain shut for Golden Week.
