Asian markets wobble as yen rallies and Iran threatens Gulf retaliation
Asian equities were mixed on Tuesday while the Japanese yen surged and Iran warned of retaliation against Gulf energy assets, pushing oil prices higher.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil & Gas sector likely to benefit from higher crude prices, creating a buy bias for related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- Oil & GasPositively affected
Companies
Mentions in This Briefing
Sectors: Oil & Gas — Positive · Buy bias. PSX tickers: OGDC, PPL. Oil & Gas sector likely to benefit from higher crude prices, creating a buy bias for related tickers.
Full Story
Open on Business Recorder## Market Overview
Asian stock markets showed little direction on Tuesday. The Japanese yen jumped about 0.6% to 153.51 per dollar, its strongest level since mid‑February, while the broader MSCI Asia‑Pacific index (excluding Japan) edged up 0.2%.
## Currency and Bond Moves
The U.S. dollar index slipped to a two‑week low of 98.82, and the yield on the U.S. 10‑year Treasury rose modestly to 4.788%. Traders continue to price roughly a 60% chance of a 25‑basis‑point Fed rate hike at the September 16 meeting.
## Oil Prices Rise on Iranian Threats
Brent crude futures in Asia ticked up 0.04% to $97.04 a barrel, extending a three‑day rally after Iran warned it would target energy infrastructure in the Gulf, including U.S. oil and gas interests, if further attacks occur. The warning lifted oil prices and added pressure on risk sentiment.
## Regional Economic Data
Japan reported stronger‑than‑expected Q2 GDP growth and a 2.4% rise in July real wages, the biggest annual gain since May 2021, fueling speculation that the Bank of Japan may tighten policy sooner. In Australia, the ASX fell 0.6% after a sharp drop in local consumer‑sentiment data.
## Analyst Commentary
Westpac analysts noted that the ongoing tit‑for‑tat strikes between the United States and Iran are keeping oil prices elevated, which dampens broader market risk appetite. Capital Economics highlighted the wage‑growth momentum in Japan as a catalyst for possible monetary tightening.
## Commodity and Crypto Snapshot
Gold rose 0.5% to $4,428.23 per ounce. Bitcoin inched up 0.1% to $79,333, while ether gained 0.2% to $2,498.
## Implications for Pakistan
Higher oil prices can boost earnings for Pakistan’s oil‑and‑gas companies and improve the trade balance, while a stronger yen may affect import costs. Overall, the mixed equity performance and heightened geopolitical risk suggest a cautious but opportunistic stance for sector‑specific investors.