Shares retreat as techs extend losses, US strikes on Iran…

Asian stocks experienced a decline on June 11, 2026, largely due to a selloff on Wall Street following an unexpected rise in U.S. inflation. The MSCI index of Asia-Pacific shares dropped by 0.9%, driven by a notable 3% fall in South Korea's KOSPI. Concurrently, Brent crude oil prices saw a rise of 2% to $94.93 per barrel, influenced by renewed U.S. military strikes on Iran, which led to concerns over oil supply. Analysts caution that Asian stocks, which had seen significant gains recently, may struggle to maintain their momentum amid heightened expectations for earnings and geopolitical tensions. The U.S. dollar index remained stable at 100.03, with a 51.6% probability for the next interest rate hike by the Federal Reserve now expected in October. The U.S. 10-year Treasury yield increased slightly to 4.564%. Meanwhile, cryptocurrencies such as Bitcoin and ether faced minor declines as investors shifted focus towards traditional assets due to the upcoming SpaceX IPO.

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A visitor stands next to an electronic screen displaying Japan's Nikkei stock prices quotation board inside a conference hall in Tokyo

A visitor stands next to an electronic screen displaying Japan's Nikkei stock prices quotation board inside a conference hall in Tokyo, Japan March 4, 2026. REUTERS/Issei Kato Purchase Licensing Rights, opens new tab

SINGAPORE, June 11 (Reuters) - Asian stocks fell on Thursday, weighed down by a Wall Street selloff after a hotter-than-expected U.S. inflation reading, while renewed U.S. strikes on Iran fuelled a rise in oil prices.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab was down 0.9%, led by a 3% drop in South Korea's ‌KOSPI (.KS11), opens new tab. S&P 500 e-mini futures were 0.3% lower.

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The United States began a fresh round of strikes against multiple targets in Iran, the U.S. military said on Wednesday, hours after President Donald Trump vowed new attacks if no peace deal is secured. Iran announced the closure of the Strait of Hormuz in response. Brent crude rose 2% to $94.93 a barrel as trading resumed in Asia.

Strategists believe that Asian stocks that had rallied hardest ⁠during the past two months are likely to extend recent losses, as markets question whether the sky-high expectations for earnings growth that had driven the gains can be maintained.

"Given already stretched valuations, these extreme bullish expectations set a vulnerable backdrop for momentum in Korea, Taiwan and the Asia tech sector," said Rupal Agarwal, Asia quant strategist at Bernstein in Singapore, in a note to clients.

Trimming positions in these stocks would be "most prudent," she added, noting that "the re-escalation on the war front could further accelerate this unwind."

On Wednesday, the S&P 500 (.SPX), opens new tab was down 1.6% with the Nasdaq Composite (.IXIC), opens new tab 2.0% lower after data showed U.S. inflation accelerated last month at its fastest pace since April 2023, albeit in ‌line ⁠with market expectations. Brent crude prices settled at $93.10 a barrel, up $1.65 or 1.8%, as U.S. President Donald Trump threatened to resume attacks on Iran.

The U.S. dollar index , which measures the greenback's strength against a basket of six currencies, held steady at 100.03, firmly within the tight trading range it has sat in throughout the past week. Safe-haven buying has driven the global reserve currency ⁠to its strongest levels since the U.S. and Iran began negotiating a ceasefire in early April.

Meanwhile, market expectations of the timing of the next rate hike moved closer, though they remain finely balanced. Fed funds futures are now pricing an implied 51.6% probability ⁠that the Federal Reserve's next hike will come at its two-day meeting on October 28, compared to a 50.1% chance a day earlier that the U.S. central bank would remain on hold until December, according to the CME ⁠Group's FedWatch tool.

The yield on the U.S. 10-year Treasury bond was up 2.6 basis points at 4.564%.

Bitcoin was down 0.5% at $61,445.19, while ether was 0.6% lower at $1,619.04, as the upcoming SpaceX IPO drove a rotation out of cryptocurrencies and other speculative assets.

Gold was off 0.3% at $4,059.59.

Reporting by Gregor Stuart Hunter; Editing by Jacqueline Wong

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