Emerging Asian equities and currencies tumbled after US President Donald Trump threatened to keep hitting Iran and spooked investors who had been betting on a fast resolution to the war, reports Reuters.

The MSCI gauge of EM Asia equities stumbled 2.3 per cent, while the currency index eased 0.2pc.

South Korea’s KOSPI index plunged 4.2pc after rising as much as 1.8pc earlier in the day.

“The statement led caution to set in again as Trump doubled down on his stance, without providing clarity on any potential signs of resolution,” said Lavanya Venkateswaran, senior ASEAN economist, OCBC.

“The conflict is not ending in the near-term and that real economic pressures continue to build.”

Shares in Singapore opened at a two-week high before falling 0.8pc, while Malaysia’s benchmark stock index dropped 1pc.

Equities in Indonesia and Taiwan declined around 1pc and 1.4pc, respectively.