Asian Markets Today: Kospi Slides 4%, Nikkei Drops 2.2% as US-Iran Conflict Escalates

Asian Markets Today: Kospi Slides 4%, Nikkei Drops 2.2% as US-Iran Conflict Escalates​

Asian markets witnessed broad-based declines on Tuesday, March 31, as rising crude oil prices and escalating tensions in the Middle East weighed heavily on investor sentiment.

Asian Stock Market Performance​

South Korean equities led the losses, with the Kospi plunging more than 4%, while the small-cap Kosdaq index dropped over 3%. The South Korean won also weakened sharply, falling 0.63% to 1,526.9 against the US dollar, marking its lowest level since 2009.

In Japan, the Nikkei 225 declined 2.2%, and the broader Topix index slipped 1.4%, reflecting cautious investor positioning amid global uncertainty.

Australia’s S&P/ASX 200 edged lower by 0.56%. Meanwhile, Hong Kong’s Hang Seng Index futures stood at 24,683, slightly below the previous close of 24,750.8, indicating a muted opening.

Back in India, stock markets remained closed on Tuesday on account of Mahavir Jayanti 2026.

US-Iran Conflict Intensifies, Oil Prices Surge​

Tensions in the Middle East continued to escalate as the US-Iran conflict entered its fifth week. Donald Trump warned that the United States could target Iran’s critical infrastructure, including power plants, oil fields, and Kharg Island, if the Strait of Hormuz remains blocked and no peace agreement is reached.

Kharg Island is a key energy hub handling about 90% of Iran’s crude exports. The US administration is also reportedly considering deploying ground forces to capture the island.

Shipping activity through the Strait of Hormuz, which previously accounted for nearly one-fifth of global seaborne oil trade, has come to a halt since February 28, following strikes by the US and Israel on Iran.

Amid these developments, crude oil prices surged. West Texas Intermediate rose 2.8% to $105.8 per barrel, while Brent crude futures for May climbed 2% to $115.17 per barrel.

US Stock Market Update​

In the United States, equities ended mixed overnight. The S&P 500 fell 0.39% to close at 6,343.72, marking its third consecutive session of losses. The Nasdaq Composite declined 0.73% to 20,794.64, while the Dow Jones Industrial Average managed a marginal gain of 0.11% to settle at 45,216.

US stock futures remained largely flat. S&P 500 futures slipped less than 0.1%, Nasdaq 100 futures eased 0.1%, and Dow Jones futures rose by 23 points.

The decline in equities came despite Federal Reserve Chair Jerome Powell stating that inflation remains under control even with rising energy prices, and that there is no immediate need for additional interest rate hikes.