Asia stocks fall as Iran tensions surge; Australia weakens ahead of RBA decision

Asian equity markets fell as heightened tensions in the Strait of Hormuz and an expected Reserve Bank of Australia (RBA) rate hike dented risk appetite. Australia’s ASX 200 led regional weakness—down about 0.6%—as investors positioned for a widely expected 25 basis-point RBA increase (its third this year), with the index having dropped in 10 of the past 11 sessions. Geopolitical risk lifted oil and gas concerns, reinforcing the RBA’s hawkish stance. Hong Kong’s Hang Seng slid ~0.8%, pressured by tech profit‑taking after recent AI‑driven gains. US S&P 500 futures were flat in Asian trade. Stock-specific weakness included Westpac Banking (-1.8%) after a profit miss and Regis Resources (-4.9%) on a takeover. Overall market tone was negative as policy and geopolitics weighed on Asian equities.