Asian Equities Slide as Renewed Fighting Threatens U.S.-Iran Ceasefire

Asian stock markets mostly fell on June 2, 2026, as renewed hostilities between the U.S. and Iran threatened a fragile ceasefire, with Japan’s Nikkei 225 dropping 1.6% to 65,833.49 and South Korea’s Kospi shedding 1.7% to 8,642.82. U.S. futures pointed lower, while oil prices eased slightly in Asian trading but remained near multi-year highs. The declines followed Wall Street records on June 1, when the S&P 500 added 0.3% to 7,599.96 and the Nasdaq rose 0.4% to 27,086.81, buoyed by Nvidia’s 6.2% surge after product updates. However, the unraveling ceasefire drove the 10-year Treasury yield to 4.46% and pressured fuel-sensitive stocks—United Airlines lost 2.6% and Alaska Air fell 3.3%. Brent crude traded at $94.70 a barrel, down 28 cents, while WTI slipped 39 cents to $91.77, both sharply above pre-conflict levels near $70. The U.S. bombed Iranian radar and drone sites after Tehran downed an American drone, and Iran launched missiles at U.S. soldiers in Kuwait. The Strait of Hormuz remains disrupted, forcing refiners across Asia and Europe to cut runs and spreading shortages into gasoline, diesel, and jet fuel. The dollar rose to 159.70 yen.