[MARKET ANALYSIS] Asia-Pac stocks followed suit to the downbeat global risk appetite after oil prices surged and yields climbed amid the geopolitical escalation in the Middle East

APAC Stocks: Negative Asia-Pac stocks are pressured after global risk sentiment was weighed on by a further surge in oil prices and upside in yields, as the geopolitical escalation in the Middle East threatens shipping in the Bab al-Mandab Strait, while there were also social media reports citing satellite images that suggest a potential strike by Houthis on Saudi's East-West pipeline. ASX 200: -1.3% Declined amid higher yields, with the Australian 3yr yield at its highest in over 15 years, while Citi revised its call and now sees two more rate hikes by the RBA this year. Nikkei 225: -2.8% Underperforms owing to higher oil prices and yields, while markets brace for a widely expected BoJ rate hike next week. KOSPI -2.6% Index is dragged lower amid tech-related pressure with notable losses in the industry heavyweights. Hang Seng & Shanghai Comp: Hang Seng -1.3% / Shanghai Comp -1.8% Chinese markets conform to the broad risk-off mood in the region, with underperformance seen in miners, while recent comments from PBoC Deputy Lu Lei that they will refine the RRR framework and conduct open-market operations more flexibly and precisely failed to provide inspiration, with today's OMO remaining at an inconsequential amount. US Equity Futures: Mixed Price action is little changed after retreating yesterday and with all eyes turning to the incoming CPI report. European Equity Futures -0.3% Indicate a lower cash market open, with Euro Stoxx 50 futures down 0.3% after the cash market closed with losses of 0.7% on Thursday.