"Middle East Conflict Sparks Market Jitters: Gold Rises, Asian Stocks Slip"

Asian stocks fell and gold prices rose as Iran's retaliatory attack on Israel heightened fears of a wider regional conflict, impacting risk sentiment. The dollar reached a 34-year high against the yen amid expectations of sustained U.S. inflationary pressures. Geopolitical tensions led to market nervousness in Asia, with Japan's Nikkei and Australia's S&P/ASX 200 index declining. China's stock market, however, saw gains after the country's securities regulator issued draft rules to strengthen supervision. U.S. Treasury yields remained near recent highs as traders adjusted rate cut expectations, with the dollar reaching a 34-year peak against the yen.