Iran War Punctures Favored Strategy of ‘Sell America, Buy Asia’

Despite a rebound Thursday, the MSCI Asia Pacific Index has tumbled about 6% this week, compared with a 0.1% slide in the S&P 500. The swing indicates a reversal of a rotation by global funds into Asia and a renewed shift toward the US as a haven, a move also supported by a stronger dollar. The Iran war has impacted Asian stocks disproportionately, partly because of the region’s outsize reliance on fuel shipments through the Strait of Hormuz.