Asian Markets Retreat as U.S.-Iran Tensions Mount

The Shanghai Composite index retreated 0.8%, mirroring the performance of the blue-chip CSI300, which also shed 0.8% by the closing bell. Declines were broad across the mainland, with the Shenzhen index dipping 0.5% and the tech-heavy STAR50 suffering a sharper 1.6% loss. Only the ChiNext Composite managed to buck the trend, posting a modest 0.3% gain.

Market sentiment remains fragile as participants weigh the potential for a prolonged closure of the strategic Strait of Hormuz. Trump’s insistence that Iran provide compensation for casualties further complicates efforts to de-escalate, forcing traders to abandon riskier assets in favor of safety as the diplomatic impasse persists.