Tensions intensified after reports that a US submarine sank an Iranian warship near Sri Lanka. The broader US-Israeli campaign against Iran has now entered its sixth day, raising concerns about a prolonged confrontation that could weigh on economic growth while adding inflation pressure.

In Japan, the 10-year government bond yield rose nearly 5 basis points to around 2.15% following a strong auction of 30-year bonds. The 30-year yield also climbed to about 3.4%, rebounding from last month’s three-month low of 3.25%.

Take a look at today's market analysis.