Analyst: Middle East conflict will lead to a general weakening of risk assets in Asia.

Rong Ren Goh, manager of asset management company Hanwha Investments, said: "The US bombing of Iranian nuclear facilities marks a significant escalation in the conflict with Iran, introducing a new stage of geopolitical risk, US direct involvement may prolong tensions in the region. For Asian markets, the main vulnerability lies in their sensitivity to rising energy prices. A prolonged conflict would increase the risk of supply disruptions, potentially exacerbating inflationary pressures and dragging down growth expectations for the entire region. With the prospect of a quick resolution to the conflict now seeming dim, investors may reprice the risks across the entire market. I expect to see inflows of safe-haven funds, as the market continues to assess the potential impact of ongoing geopolitical instability and high oil prices, the US dollar will be in demand, while Asian risk assets generally weaken."