Asian Markets Reverse Gains as Nikkei, Kospi Slide Up to 3% After Trump’s Iran War Remarks

Asian Markets Reverse Gains as Nikkei, Kospi Slide Up to 3% After Trump’s Iran War Remarks​

Asian Markets Today​

Asian markets surrendered early gains on Thursday, April 2, as investor sentiment weakened following US President Donald Trump’s latest address on the ongoing Iran war. The speech heightened geopolitical concerns, triggering a broad sell-off across key regional indices.

Japan’s Nikkei 225 declined 1.4% after the address, while the broader Topix index slipped 0.94%. In South Korea, the Kospi dropped sharply by 2.82%, and the small-cap Kosdaq fell 3%, reflecting risk-off sentiment among investors.

Australia’s S&P/ASX 200, which had opened on a positive note, reversed course to trade 0.48% lower. In Hong Kong, the Hang Seng index opened 0.5% down, while mainland China’s CSI 300 remained largely unchanged, indicating relatively muted domestic reaction.

Gift Nifty Signals Weak Opening for India​

Back home, early indicators point to a subdued start for Indian equities. Gift Nifty was trading near the 22,356 level, indicating a discount of around 444 points compared to the previous close of Nifty futures. This suggests a likely gap-down opening for benchmark indices.

Trump’s Iran War Remarks Weigh on Sentiment​

In his address, President Trump stated that US objectives in Iran were close to being achieved, asserting that “we have all the cards” in the conflict. He also warned of intensified military action, stating that the US would strike Iran “very hard” over the next two to three weeks.

The remarks come amid increasing scrutiny of the administration’s approach to the conflict, now in its fifth week. The prolonged tensions have contributed to elevated geopolitical uncertainty and disruptions in key global energy routes.

Earlier, Trump had claimed that Iran’s “new regime president” had sought a ceasefire, a statement that Tehran has denied. He added that the US would consider such a proposal only if the Strait of Hormuz remained “open, free, and clear,” according to his post on Truth Social.

However, a separate report indicated that Trump had previously shown willingness to end the US military campaign even if the Strait of Hormuz remained closed, adding another layer of complexity to the evolving situation.