World shares are mixed as tensions escalate in the Middle East

World shares were mixed on Wednesday, with European benchmarks mostly higher. Hong Kong’s Hang Seng soared more than 6% while other Asian markets retreated as tensions escalated in the Middle East.

Oil prices extended gains after Iran fired dozens of missiles into Israel, potentially raising the risk of disruptions to supplies. That news overshadowed an upbeat report showing U.S. job openings rose unexpectedly in August as the American labor market continued to show resilience.

A debate Tuesday night between vice presidential candidates Democratic Gov. of Minnesota Tim Walz and Republican senator JD Vance likewise drew scant market attention, analysts said.

“The market’s muted reaction says it all — traders are far more focused on pressing economic concerns and geopolitical risks than on the vice presidential showdown,” Stephen Innes of SPI Asset Management said in a commentary.

Germany's DAX edged 0.1% higher to 19,232.74 and the FTSE 100 in London advanced 0.4% to 8,311.82. In Paris, the CAC 40 picked up 0.5% to 7,611.12.

The future for the S&P 500 was 0.1% lower while that for the Dow Jones Industrial Average gave up 0.2%.

Tokyo's Nikkei 225 lost 2.2% to 37,808.76. It has retreated since the ruling Liberal Democratic Party chose Shigeru Ishiba to lead the government, replacing Fumio Kishida, who stepped aside on Tuesday. Higher energy prices in Japan, which relies heavily on imported oil, gas and coal to power its industries, would add to Ishiba's burdens as he works to pep up the economy.

Hong Kong's Hang Seng roared 6.2% higher to 22,443.73, riding a wave of investor enthusiasm over recent moves by Beijing to rev up the Chinese economy with policies aimed at reviving the ailing property sector and supporting financial markets.

With Shanghai and other markets in China closed, trading crowded into Hong Kong. Hong Kong-traded shares in China Vanke, one of many real estate developers squeezed by a crackdown on borrowing that pushed the industry into a slump, jumped 10%. Longfor Holdings Group rocketed nearly 25% and appliance maker Midea surged 4.2%.

The Hong Kong benchmark is trading at its highest level since early 2023.

Australia's S&P/ASX 200 edged 0.1% lower to 8,198.20 and the Kospi in Seoul lost 1.2% to 2,561.69.

On Tuesday, U.S. stocks retreated from their records, with the S&P 500 dropping 0.9%. The Dow dropped 0.4% and the Nasdaq composite lost 1.5%.

Israel is not a major producer of oil, but Iran is, and the potential for a wider conflict could affect other, neighboring producers of crude. The price for a barrel of benchmark U.S. crude rose as much as 5% on Tuesday before settling 2.4% higher. Brent crude, the international standard, rallied 2.6%.

Early Wednesday, U.S. crude was up $1.51 at $71.34 per barrel. Brent crude climbed $1.45 to $75.01 per barrel.

The all-time high that the S&P 500 set on Monday was its 43rd of the year so far. Stocks had been jumping on hopes the U.S. economy can continue to grow despite a slowdown in the job market, as the Federal Reserve cuts interest rates to give it more juice. The Fed last month lowered its main interest rate for the first time in more than four years, and it’s indicated it will deliver more cuts through next year.

The dominant question hanging over Wall Street is whether the cuts will ultimately prove to be too little, too late after the Fed earlier kept rates at a two-decade high in hopes of braking on the economy enough to stamp out high inflation.

A discouraging report arrived Tuesday, showing U.S. manufacturing weakened by more in September than economists expected.

Another threat to the economy could lie in a strike by dockworkers at 36 ports across the eastern United States that could snarl supply chains and drive up inflation.

The workers are asking for a labor contract that doesn’t allow automation to take their jobs, among other things. Supply chain experts say consumers won’t see an immediate impact because most retailers have stocked up on goods, moving ahead shipments of holiday gift items.

The dollar was trading at 144.03 yen, up from 143.57 yen late Tuesday. The euro rose to $1.077 from $1.1070.

The New York Stock Exchange, right, is shown on Tuesday, Oct. 1, 2024, in New York. (AP Photo/Peter Morgan)

A person walks in front of the Tokyo Stock Exchange building Wednesday, Oct. 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of the Tokyo Stock Exchange building Wednesday, Oct. 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Oct. 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

People stand in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Oct. 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

People watch an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Oct. 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Oct. 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Oct. 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

The Middle East moved closer to a long-feared regional war the day after Iran fired a barrage of missiles at Israel and Israel said it began limited ground incursions into Lebanon targeting the Iran-backed Hezbollah militia.

Israel said it intercepted many of the missiles, and officials in Washington said U.S. destroyers assisted in Israel's defense. Iran said most of its missiles hit their targets. There were no immediate reports of casualties.

Israeli Prime Minister Benjamin Netanyahu vowed late Tuesday to retaliate against Iran, which he said “made a big mistake tonight and it will pay for it.” An Iranian commander threatened wider strikes on infrastructure if Israel retaliates against Iran's territory.

The United Nations Security Council called an emergency meeting for Wednesday to address the spiraling conflict.

Israel and Hezbollah have traded fire across the Lebanon border almost daily since Oct. 8, the day after Hamas’ cross-border attack on Oct. 7, 2023, which killed 1,200 Israelis and took 250 others hostage. Israel declared war on the militant group in the Gaza Strip in response. More than 41,000 Palestinians have been killed in the territory, and just over half the dead have been women and children, according to local health officials.

Here is the latest:

JERUSALEM — The Israeli military has warned people to evacuate another 24 villages across southern Lebanon.

The warning on Wednesday came days after the military launched what it said were limited ground operations near the border to combat the Hezbollah militant group.

The villages are in a U.N.-declared buffer zone established after Israel and Hezbollah fought their last war in 2006.

MADRID — Spain’s Defense Minister Margarita Robles says that her government will send two military planes to evacuate 350 Spanish citizens from Lebanon.

Robles said the planes will depart Spain on Thursday “if conditions in the airspace allow it.”

The announcement came a day after Spanish Foreign Minister José Manuel Albares urged Spaniards in Lebanon to leave the country and for Israel to stop its assault.

Spain also has 676 soldiers in Lebanon deployed under a United Nations peacekeeping mission.

PARIS — French President Emmanuel Macron reiterated France’s commitment to Israel’s protection and said Paris has “mobilized its military resources in the Middle East to counter the Iranian threat,” according to a statement from the French presidency on Wednesday.

French military spokesman Col. Guillaume Vernet would not comment on military resources deployed after Iran has fired a barrage of missiles at Israel Tuesday. In April, France said its forces in the Middle East have intercepted Iranian missiles and drones targeting Israel.

Macron condemned Iran’s attack on Israel “in the strongest terms” and called on all countries involved in “the dangerous escalation of tensions” in the Middle East “to show the greatest restraint.” He reiterated France’s demand that “Hezbollah cease its terrorist actions against Israel and its population,” according to the statement.

The French president also called on Israel “to end its military operations (in Lebanon) as soon as possible” because “too many civilians have already become victims.”

He said he hoped that Lebanon’s “sovereignty and territorial integrity” would be restored after Israel’s military operations “in strict compliance” with the United Nations Security Council resolution that ended the Israel-Hezbollah war in 2006.

NEW DELHI — India on Wednesday said it was deeply concerned at the escalation of the security situation in the Middle East and reiterated its call for restraint by all concerned and protection of civilians.

"It is important that the conflict doesn’t take a wider regional dimension, and we urge that all issues be addressed through dialogue and diplomacy,” said a statement issued by the External Affairs Ministry.

"We are closely monitoring the recent escalation in security situation in the region,” the ministry said.

It advised Indian nationals to avoid all non-essential travel to Iran. ``Those currently residing in Iran are requested to remain vigilant and stay in contact with the Indian Embassy in Tehran.

TEHRAN, Iran — Iran’s foreign minister has described his nation’s ballistic missile attack on Israel as self-defense.

Abbas Araghchi made the comments in a television interview on Wednesday in Tehran.

“We sent a message to the American side through the Swiss Embassy suggesting them not to get involved in the story,” Araghchi said. “We will confront and answer any third party that enters any operation against us in support of the Zionist regime and we will have a crushing response.”

He also reiterated that Iran’s response to Israel will be “harsher” if Israel attacks Iran in response.

SEOUL, South Korea – South Korea plans to send military aircraft to evacuate its citizens from conflict areas in the Middle East as he called a meeting to discuss the impact of intensified fighting in the region, President Yoon Suk Yeol said.

Yoon’s government on Wednesday didn’t immediately provide more details about its evacuation plan, including how and when it would be carried out or the possible number of Koreans who could be flown home.

There are reportedly about 480 South Korean nationals living in Israel, 130 in Lebanon and 110 in Iran. There’s increasing concern about a broader regional war in the Middle East after Iran on Tuesday fired a barrage of missiles at Israel and Israel began limited ground incursions into Lebanon targeting the Iran-backed Hezbollah group.

During the government meeting in Seoul, Yoon instructed officials to operate a 24-hour monitoring system to track the Mideast developments and assess the impact on South Korea’s security and economy, including possible affects on energy supplies, trade logistics and supply chains.

BERLIN — German Chancellor Olaf Scholz is calling on Iran and Hezbollah to stop their attacks on Israel and says Tehran is risking a wider regional conflagration.

Scholz issued a statement on Wednesday strongly condemning Iran’s missile barrage against Israel the previous evening. He said that “with this, Iran is risking setting the whole region on fire — that must be prevented under all circumstances. Hezbollah and Iran must cease their attacks on Israel immediately.”

The chancellor added that Germany will continue to push for a cease-fire between Israel and the Hezbollah militant group, which he said must lead toward full implementation of a U.N. Security Council resolution that calls for Hezbollah to withdraw from the area near the Israeli border.

Scholz said that would “clear the way for people to return to the north of Israel and at the same time open a prospect of consolidating Lebanon’s statehood.”

KHAN YOUNIS, Gaza Strip — At least 32 people have been killed in Israeli strikes in southern Gaza overnight and into Wednesday, Palestinian medical officials said.

The European Hospital in the hard-hit city of Khan Younis said it received the bodies after heavy Israeli airstrikes and ground operations in the city. It said the dead include several women and children, and that dozens of people were wounded.

There was no immediate comment from the Israeli military.

Israel has continued to strike what it says are militant targets across Gaza nearly a year after Hamas’ Oct. 7 attack ignited the war there, even as attention has shifted to Lebanon, where Israel is battling Hezbollah, and to Iran, which launched a ballistic missile attack on Israel late Tuesday.

Dr. Saleh al-Hams, head of the nursing department at the European Hospital, said dozens of dead and wounded people were brought to his facility and the Nasser Hospital starting at around 3 a.m. Some of the wounded were in critical condition, meaning the death toll could rise, he said.

He said Israel had carried out heavy airstrikes as its ground forces staged an incursion into three neighborhoods in Khan Younis. Israel carried out a massive offensive earlier this year that left large parts of the city in ruins.

COPENHAGEN — Police in Denmark said two explosions took place overnight in the vicinity of the Israeli Embassy in Copenhagen. In a post on X, the police said no one had been injured and an investigation was underway.

Police had cordoned off the area while police with search dogs and forensic teams were inspecting the area.

Addressing local media on Wednesday morning, police refused to give details about the intensity of the reported blasts or the damage they may have caused, and said it was too early to say if the explosion was aimed at the embassy.

On Tuesday night, the area around the Israel embassy in Stockholm was also closed off after a loud bang was reported. Police later announced that findings from the scene indicated that the embassy was hit by bullets, according to the TT news agency.

LONDON — The U.K. defense chief said Britain’s military helped Israel repel a missile attack from Iran.

Writing on X, Defense Secretary John Healey said British forces “played their part in attempts to prevent further escalation in the Middle East.”

He did not give details of U.K. involvement.

Prime Minister Keir Starmer said the U.K. supports Israel’s right to self defense, stating that “Iran has menaced the Middle East for far too long.”

In a televised statement after the missile attack on Tuesday night, Starmer said Iran’s missile attack had left the region “on the brink” and he was “deeply concerned about the risk of miscalculation.”

Starmer said he spoke to Israeli Prime Minister Benjamin Netanyahu, French President Emmanuel Macron and German Chancellor Olaf Scholz on Tuesday as part of efforts to prevent a wider conflict. Starmer’s office said he was on the phone with Netanyahu when the Iranian attack began.

BEIJING — China’s official Xinhua news agency said 146 Chinese nationals and five members of their families arrived in Beijing on Wednesday after being evacuated from Lebanon on a charter flight.

The report said that all Chinese citizens who wanted to evacuate have left the country, while the Chinese Embassy in Lebanon will continue its duties.

MELBOURNE, Australia — Australian Prime Minister Anthony Albanese condemned Iran’s missile attack on Israel and called for de-escalation.

“We’re very concerned about Iran’s actions, which is why we condemn them,” Albanese told reporters in Melbourne, Australia, on Wednesday.

“It is a good thing that it would appear that the defense of Israel, supported by the United States, has ensured that there is no loss of civilian life, it would appear, at this stage. There’s been too much loss of life in that region,” Albanese added.

Albanese said Israel had a right to defend itself.

“What we have called for consistently is for a de-escalation in the region, along with our friends in the United States and others,” Albanese said.

UNITED NATIONS — Yemen’s two main ports remain operational following Israeli airstrikes, but the strikes damaged power stations, the United Nations says.

U.N. spokesman Stephane Dujarric said Tuesday that the U.N. humanitarian coordinator in Yemen went to assess the situation at Yemen’s main port of Hodeida and nearby port of Ras Isa following Sunday’s Israeli strikes targeting sites used by Houthi rebels in the ports in western Yemen.

Israel said it was retaliating for a Houthi missile fired at central Israel on Saturday which was shot down. The Houthis said it was aimed at Ben Gurion Airport, where Prime Minister Benjamin Netanyahu’s plane had just arrived from New York where he addressed the annual meeting of world leaders at the United Nations.

Dujarric said the U.N.’s humanitarian partners reported Tuesday that “after conducting an initial assessment, both ports remain operational and able to receive commercial and humanitarian supplies.”

“Power stations throughout Hodeida city are, however, running at a very limited capacity,” the U.N. spokesman said.

TEHRAN, Iran — A top Iranian military commander has warned that his country will hit Israel’s infrastructure if it takes any action against its territory.

Iran’s armed forces joint chief of staff Gen. Mohammad Bagheri said Wednesday that the Revolutionary Guard was prepared both defensively and offensively to repeat its missile attack with “multiplied intensity.”

“If the Zionist regime, that has gone insane, is not contained by America and Europe and intends to continue such crimes, or do anything against our sovereignty or territorial integrity, tonight’s operation will be repeated with much higher magnitude and we will hit all their infrastructure,” he said.

Bagheri said Iran avoided targeting Israeli civilians although it was “completely feasible.”

UNITED NATIONS — Israel’s U.N. ambassador says his government will decide when and how to respond to Iran’s barrage of close to 200 ballistic missiles that forced Israel’s 10 million population into bomb shelters. “But I can tell you one thing, it will be noticed," he said. "It will be painful.”

Danny Danon reacted to a statement from Iran’s U.N. Mission that any new Israeli action would be met with a “crushing response,” saying: “I would not advise Iran to challenge our determination, our capabilities. In the past, we have proved it. We will prove it again.”

“We have no desire for war or escalation, but we cannot sit idly by when our civilians are being attacked in such manner,” the Israeli ambassador said. “Iran used to send boxes but now, when they send almost 200 ballistic missiles, that’s something that I don’t think any other nation in the world will ignore.”

Demonstrators celebrate Iran's missile strike against Israel during a gathering in front of the British Embassy in Tehran, Iran, Tuesday, Oct. 1, 2024. (AP Photo/Vahid Salemi)

A demonstrator holds a Palestinian flag during an anti-Israeli gathering celebrating Iran's missile strike against Israel in front of the British Embassy in Tehran, Iran, Tuesday, Oct. 1, 2024. (AP Photo/Vahid Salemi)

An Israeli mobile artillery unit fires a shell from northern Israel towards Lebanon, Wednesday, Oct. 2, 2024. (AP Photo/Baz Ratner)

Demonstrators celebrate Iran's missile strike against Israel during an anti-Israeli gathering in front of the British Embassy in Tehran, Iran, Tuesday, Oct. 1, 2024. (AP Photo/Vahid Salemi)

Projectiles fly through the sky in central Israel as a siren sounds a warning of incoming missiles fired from Iran towards Israel, Tuesday, Oct. 1, 2024. (AP Photo/Ohad Zwigenberg)

An Israeli mobile artillery unit fires a shell from northern Israel towards Lebanon, Wednesday, Oct. 2, 2024. (AP Photo/Baz Ratner)

Demonstrators celebrate Iran's missile strike against Israel during a gathering in front of the British Embassy in Tehran, Iran, Tuesday, Oct. 1, 2024. (AP Photo/Vahid Salemi)

In this image taken from video shows projectiles being intercepted over Jerusalem, Israel, Tuesday, Oct. 1, 2024. (AP Photo)

Smoke rises from the site of an Israeli airstrike in Beirut's southern suburb, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hassan Ammar)

An Israeli soldier raises his fist from a moving APC in northern Israel near the Israel-Lebanon border, Tuesday, Oct. 1, 2024. (AP Photo/Baz Ratner)

Rescuers arrive at the site of a building that was hit in an Israeli airstrike in Bir Hassan, Beirut, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hussein Malla)

A damaged building hit in an Israeli airstrike in Bir Hassan, Beirut, Lebanon, Tuesday, Oct. 1, 2024. (AP Photo/Hussein Malla)

Israeli soldiers raise their fists from a moving APC in northern Israel near the Israel-Lebanon border, Tuesday, Oct. 1, 2024. (AP Photo/Baz Ratner)

Smoke rises following Israeli bombardment in southern Lebanon as seen from northern Israel, Tuesday, Oct. 1, 2024. (AP Photo/Leo Correa)

Police guard outside the Israeli embassy in Stockholm, Sweden, Tuesday, Oct. 1, 2024, after a suspected shooting near the embassy. (Anders Wiklund/TT News Agency via AP)

Police work outside the Israeli embassy in Stockholm, Sweden, Tuesday, Oct. 1, 2024, after a suspected shooting near the embassy. (Anders Wiklund/TT News Agency via AP)

EDS NOTE: GRAPHIC CONTENT - Israeli forensic technicians work in a light rail car following a shooting attack in Jaffa, a mixed Arab-Jewish area of Tel Aviv, Israel, Tuesday, Oct. 1, 2024. (AP Photo/Itai Ron)

Members of Zaka Rescue and Recovery team load a dead person into an ambulance following a shooting attack in Jaffa, a mixed Arab-Jewish area of Tel Aviv, Israel, Tuesday, Oct. 1, 2024. (AP Photo/Itai Ron)

Israeli air defense system fires to intercept rockets fired from Iran, Tuesday, Oct. 1, 2024, over Hadera, Israel. (AP Photo/Ariel Schalit)

Israeli air defense system fires to intercept missiles over Hadera, Israel Tuesday, Oct. 1, 2024. (AP Photo/Ariel Schalit)

Missiles launched from Iran towards Israel streak across the night sky as seen from Deir al-Balah, Gaza Strip, Tuesday, Oct. 1, 2024. (AP Photo/Abdel Kareem Hana)

Demonstrators cheer as they wave Iranian and Hezbollah flags in an anti-Israeli gathering celebrating Iran's missile strike against Israel, at Felestin (Palestine) Sq. in Tehran, Iran, Tuesday, Oct. 1, 2024. (AP Photo/Vahid Salemi)

Fireworks explode next a portrait of slain Hezbollah leader Hassan Nasrallah and a minaret of a mosque in an anti-Israeli gathering celebrating Iran's missile strike against Israel, at Felestin (Palestine) Sq. in Tehran, Iran, Tuesday, Oct. 1, 2024. (AP Photo/Vahid Salemi)

Demonstrators cheer as artificial snow sprayed in an anti-Israeli gathering celebrating Iran's missile strike against Israel, at Felestin (Palestine) Sq. in Tehran, Iran, Tuesday, Oct. 1, 2024. (AP Photo/Vahid Salemi)

People take cover on the side of a road as a siren sounds a warning of incoming missiles fired from Iran on a freeway in Shoresh, between Jerusalem and Tel Aviv in Israel Tuesday, Oct. 1, 2024. (AP Photo/Ohad Zwigenberg)

People take cover on the side of the road as a siren sounds a warning of incoming missiles fired from Iran on a freeway in Shoresh, between Jerusalem and Tel Aviv in Israel Tuesday, Oct. 1, 2024.(AP Photo/Ohad Zwigenberg)

Israelis take cover as projectiles launched from Iran are being intercepted in the skies over in Rosh HaAyin, Israel, Tuesday, Oct. 1, 2024. (AP Photo/Maya Alleruzzo)