Chinese Stocks Fall, U.S. Bonds Rise as Trump Administration Weighs Iran Retaliation –

Asian stocks tumbled on Tuesday, as the flight from risk assets continued in the wake of devastating weekend attacks on Saudi Arabia‘s oil industry.

Latest U.S. intelligence has been persistent in claiming that Iran was responsible for the attack. As The Wall Street Journal reports, Washington and its allies are already considering retaliation.

China Leads Asia Pacific Stocks Lower

Equity markets in the Asia Pacific region were mostly lower Tuesday, with Chinese shares extending an early-week slide. The benchmark Shanghai Composite Index fell 0.8% to 3,005.53.

shanghai composite index
China’s Shanghai Composite Index falls on risk aversion. | Chart: Yahoo Finance

The Shanghai Shenzhen CSI 300 Index was down 0.7% at 3,929.25.

In Hong Kong, the Hang Seng Index tumbled 0.9% to 26,884.40.

Japan’s Nikkei 225 index was down 0.1% to 21,964.74. Japanese markets were closed on Monday for a national holiday.

Australia’s benchmark S&P/ASX 200 Index pared losses to trade flat at 6,674.80.

U.S. Blames Iran for Saudi Oil Attack

The U.S. intelligence community believes Iran is responsible for weekend drone attacks that devastated Saudi Arabia’s oil fields, resulting in the loss of 5.7 million barrels per day of crude output. According to The Wall Street Journal, Washington and its allies are weighing retaliation.

Iran has denied any involvement in the attacks, which were claimed almost immediately by Yemen’s Houthi rebels at war with Saudi Arabia since 2015. The Saudis dismissed the Houthis’ claims on grounds that the weapons used were Iranian made.

On Sunday, President Trump tweeted that his military was “locked and loaded” to respond once the attackers…

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