[MARKET ANALYSIS] Asia-Pac stocks are pressured after US and Iran exchanged threats, including President Trump's 48-hour ultimatum

APAC Stocks: Negative

• Asia-Pac stocks are pressured after the US and Iran exchanged threats over the weekend, with US President Trump announcing a 48-hour ultimatum for Iran to fully open the Strait of Hormuz or the US will obliterate Iranian power plants, while Iran responded with its own threats, including completely shutting the Strait of Hormuz until damaged plants are rebuilt and warned that all power plants in regional countries that host US bases will become legitimate targets.

ASX 200: -0.8%

• Retreated amid continued underperformance in miners, materials and resources, while defensives are at the other end of the spectrum amid the broad risk-off mood.

Nikkei 225: -3.4%

• Slumped firmly beneath the 52,000 level and suffered intraday losses of more than 2,000 points on return from a 3-day weekend amid energy-related headwinds, while Japanese Foreign Minister Motegi denied that Japan was considering unilateral negotiations with Iran to secure passage for vessels through the Strait of Hormuz.

Hang Seng & Shanghai Comp: Hang Seng -3.4% / Shanghai Comp -2.4%

• Chinese markets conformed to the broad downbeat mood as participants reflected on a slew of earnings, while rehashed rhetoric from PBoC Governor Pan that they will continue to implement appropriately loose monetary policy provided little solace.

US Equity Futures: Lower

• Declined at the reopen as the Iranian conflict continued to show no signs of abating, with the US and Iran both threatening to target energy infrastructure.

European Equity Futures -1.4%

• Indicate a lower cash market open with Euro Stoxx 50 futures down 1.4% after the cash market closed with losses of 2.0% on Friday.