Asia-Pacific markets are bracing for a rough session as geopolitical tensions heat up. Trump's latest moves on defense procurement are sending shockwaves through the sector, with defense-linked equities getting hammered. Meanwhile, crude oil is sliding on demand concerns and shifting policy outlooks, pulling energy stocks lower alongside broader risk sentiment. This spillover effect typically weighs on risk assets across the region—equities included. For traders monitoring macro trends, the combination of weakened corporate earnings expectations in defense and energy sectors, coupled with falling oil prices, tends to pressure emerging market currencies and commodities. The ripple effect often extends to cryptocurrency markets as investors reassess portfolio risk and liquidity positions. Watch how Asian indices open: the tone here often signals broader risk-off momentum heading into US session.