Asian Markets Brace for Impact: Iran Missile Attack Triggers Sell-Off as U.S. GDP Growth Estimate Plummets
By Jamie McGeever
As the final quarter of the year kicks off, investors are met with a stark contrast from the optimism of the previous quarter. The recent escalation of tensions between Israel and Iran, marked by Iran's missile attack on Israel, has sent shockwaves through global markets.
Investors rushed to safe-haven assets like U.S. Treasuries, gold, and the dollar, causing a sharp decline in stock markets and a surge in oil prices. The U.S. GDP growth estimate took a hit as well, with the Atlanta Fed slashing its forecast for third-quarter growth.
On Wednesday, Asian markets will be closely watching key economic data releases from South Korea and Japan, including inflation, manufacturing PMI, and consumer confidence figures. The cooling inflationary pressures, driven by the plummeting oil prices, are a cause for concern for central banks worldwide.
Meanwhile, Japan's markets are expected to stabilize after recent political upheaval, as investors assess the economic policies of new Prime Minister Shigeru Ishiba. His commitment to maintaining loose monetary policy and steering Japan out of deflation will be closely monitored.
Overall, the outlook for Asian markets remains uncertain as geopolitical tensions and economic indicators continue to shape investor sentiment.