Markets Are Repricing More Prolonged Middle East Conflict, JPMorgan Says

JPMorgan Asset Management's Sylvia Sheng says Asian markets are undergoing a de-risking event amid the ongoing Middle East conflict, signaling region-wide risk-off positioning. Expect pressure on Asian equities and EM FX, a potential safe-haven bid in major sovereign bonds and USD/JPY, and elevated volatility until geopolitical tensions abate.

Analysis

JPMorgan Asset Management's Sylvia Sheng says Asian markets are undergoing a de-risking event amid the ongoing Middle East conflict, signaling region-wide risk-off positioning. Expect pressure on Asian equities and EM FX, a potential safe-haven bid in major sovereign bonds and USD/JPY, and elevated volatility until geopolitical tensions abate.