Asian stocks extend global rout; bonds hammered as war drags on

Asian stock markets fell sharply, influenced by a global downturn as concerns over escalating conflict in the Middle East and rising energy costs weighed on investor sentiment. The MSCI Asia-Pacific index dropped 1.4%, with significant losses in South Korea and Japan. Global bond yields surged amid inflation fears, with Norway's central bank signaling potential rate hikes. The U.S. dollar strengthened as a safe haven, while the Australian dollar hit a two-month low. Analysts warn that prolonged conflict could hinder global growth and increase recession risks, particularly for Asia due to reliance on imported fuel.