ASX 200 Dips on US Strikes Against Iran

Australia's ASX 200 index dropped Monday in response to US military action against Iranian rocket launchers, weighing on risk sentiment across Asia-Pacific markets.

The index traded around 9,077.6 points, down roughly 0.16%, after the weekend's developments in the Middle East, according to index data.

The pullback followed a stronger finish to last week, when the index rose 0.6% Friday to close at 9,092.3 points.

Morgan Stanley expects the Reserve Bank of Australia to raise its official cash rate at its next meeting on September 29, forecasting a 25-basis-point increase to 4.6%, citing stronger-than-expected July inflation data as the catalyst for the revised call.