<div id="readability-page-1" class="page"><div>By Sherry Qin and Ronnie HaruiAsian equities fell while oil and gold surged early on Monday as the U.S. and Israel traded deadly blows with Iran across the Middle East, jolting markets across asset classes.The U.S. and Israel launched strikes against Iran over the weekend, triggering a swift response from Iran targeting Israel, U.S. military bases throughout the region, and its Arab neighbors' airports.Oil surged by over 8% as markets opened in Asia, and investors piled into safe-haven assets like gold. U.S. stock futures declined as the escalating Middle East conflict reduced appetite for risk assets.&#34;Gold remains the clearest barometer of investor fear,&#34; said Josh Gilbert, market analyst at eToro. &#34;Markets hate uncertainty, and right now, investors are facing one of the most uncertain geopolitical backdrops in years.&#34;In the currency space, the dollar gained against most Asian currencies.For equities, the Iran crisis is &#34;clearly negative,&#34; Goldman Sachs' research team said, expecting consumer-facing sectors like airlines, and industrial oil users to face pressure.Airline stocks suffered steep losses in Asia as various carriers announced flight suspensions due air space closures. Japan Airlines slid 5.05%, Singapore Airlines shed 5.6% and Cathay Pacific Airways was down 3.8%.On the flip side, shipping stocks gained amid the risk of potential disruptions to disruption to vital routes like the Strait of Hormuz, a waterway between Oman and Iran that is a strategic flow point for Middle Eastern ships carrying fuel to Asia.Shipping costs are already moving, said strategists at Franklin Templeton, as insurers issue cancellation notices. Both oil and gas will reprice higher, they said, noting that about 20% of global LNG trade transits the strait, making shipping risk a gas-market event as much as an oil-market event.Asian countries that rely heavily on energy imports could be most vulnerable to oil supply disruptions if the conflict sustains, analysts say.&#34;What really matters will be the intensity and longevity of the clash, and the actual on-ground displacement of oil tankers from the key producing region,&#34; Phillip Nova analyst Priyanka Sachdeva said.More headlines on new attacks kept flowing on Monday, but asset moves stabilized somewhat.Gold pared gains to last sit at $5,347.86/oz while silver was 0.6% higher at $94.29/oz. Yields on 10-year Treasurys rose 1 basis points to 3.9668% and 30-year Treasury yields gained 1 basis points to 4.6421%, FactSet data showed. Yields move inversely to bond prices.Oil pulled back too, with front-month Brent and WTI last at $76.40 and $70.08 a barrel respectively.Bitcoin made a surprise comeback after coming under pressure over the weekend, and was last trading up 1.3% at $66,255.58, according to LSEG.&#34;BTC clawed back above US$67K inside 24 hours, the first time since March 2023 we've watched Bitcoin rally into geopolitical stress. That is not typical risk asset behaviour,&#34; said Charlie Sherry, head of finance at BTC Markets.Equities indexes remained downbeat heading into mid-day trade. Japan's Nikkei Stock Average was last down 1.5%, while Hong Kong's Hang Seng Index was 2.3% lower--with the tech gauge dropping below the key 5000 level.Write to Sherry Qin at sherry.qin@wsj.com and Ronnie Harui at ronnie.harui@wsj.com</div></div>

GOEX

Asian equities fell while oil and gold surged as the U.S. and Israel engaged in conflict with Iran, impacting markets globally. Oil prices jumped over 8%, and safe-haven assets like gold gained traction amid rising geopolitical uncertainty. Airline stocks in Asia faced significant losses due to flight suspensions, while shipping stocks rose due to potential disruptions in vital routes. Analysts warn that Asian countries reliant on energy imports could be vulnerable to supply disruptions. Bitcoin saw a surprising recovery, trading up 1.3%. Overall, equities remained downbeat with major indexes declining.

Asian Equities Fall, Oil Surges Amid Middle East Conflict — Update