(Jan 6): Financial markets are likely to face a volatile start to the week in Asia after geopolitical tensions flared in the Middle East, sending futures in the region lower. The yen advanced as investors favored haven assets.

As investors assess the fallout from the U.S. killing in an airstrike of Iran’s top military commander, Japanese futures dipped with traders returning after an extended holiday last week. They also slipped in Sydney and Hong Kong. The yen held near its strongest against the dollar in almost three months amid demand for haven assets.