Asian equity and bond markets opened the new quarter on a cautious note, weighed down by renewed geopolitical uncertainty and currency volatility.
Stalled negotiations between the United States and Iran have reignited concerns over Middle East stability, dampening investor appetite for risk.
Simultaneously, the Japanese yen faced significant selling pressure, prompting speculation that authorities may intervene to curb further depreciation.
The cautious mood marks a shift from the mixed signals seen earlier in the week, as regional indices failed to fully capitalize on a recent rebound in US technology stocks.
Instead, the focus has turned to defensive positioning amid the dual threats of geopolitical escalation and currency instability.
The yen's weakness, in particular, has drawn sharp attention from traders monitoring for signs of official action.