investingLive Asia-pacific FX news wrap 13 Jul

The article describes a sharp risk-off move in Asian markets driven by a major escalation in the Gulf conflict, with multiple waves of strikes between the US and Iran raising fears over shipping through the Strait of Hormuz. Brent crude rose more than 3.5% and extended gains, while gold fell over 1% as the dollar firmed on expectations of tighter policy. Asian equities sold off broadly: Japan’s Nikkei dropped around 1% to 1.5%, and South Korea’s KOSPI plunged as much as 7% intraday, hit by profit-taking in chip names and concerns over higher energy costs. US and European equity futures also weakened ahead of key US CPI data and Fed Chair Warsh’s testimony. Overall, the market reaction reflects heightened geopolitical risk, inflation concerns from higher oil, and broader pressure on risk assets.