In Tokyo, the Nikkei 225 lost 1.7% to 37,993.18. It has retreated since the ruling Liberal Democratic Party chose Shigeru Ishiba to lead the government, replacing Fumio Kishida, who stepped aside on Tuesday. A weaker Japanese yen and higher energy prices would add to Ishiba's burdens as he works to pep up the economy.

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

Hong Kong shares roared higher while Japan dropped and Europe wobbled a day after Iran fired scores of missiles into Israel.