Asian Markets Tumble as US-Iran Conflict Enters Fifth Week, Nikkei and Kospi Lead Losses

Asian Markets Tumble as US-Iran Conflict Enters Fifth Week, Nikkei and Kospi Lead Losses​

Broad Sell-Off Across Asia Amid Escalating Geopolitical Tensions​

Asian markets today witnessed a sharp decline on Monday, March 30, as the ongoing US-Iran conflict entered its fifth week, intensifying investor concerns despite continued diplomatic efforts.

South Korea’s Kospi plunged more than 5%, emerging as one of the worst-hit indices in the region. The small-cap Kosdaq also fell 3.97%, reflecting widespread selling pressure.

Japan’s Nikkei 225 dropped 3.97%, while the broader Topix index slipped 3.9%. During their March meeting, policymakers at the Bank of Japan discussed the need for further rate hikes, as rising oil prices linked to the Middle East conflict continue to drive inflationary pressures.

Regional Markets Track Weak Sentiment​

Australia’s S&P/ASX 200 declined 1.46% in early trade, mirroring the negative trend across Asia.

In Hong Kong, Hang Seng Index futures were at 24,630, significantly below the previous close of 24,951.88, indicating a weaker start for the benchmark.

GIFT Nifty Signals Gap-Down Opening for Indian Markets​

Trends in GIFT Nifty pointed to a weak opening for Indian equities. The index was trading near the 22,551 mark, reflecting a discount of 266 points compared to the previous close of Nifty futures.

Middle East Conflict Drives Market Weakness​

The ongoing conflict in the Middle East remains a key factor behind the market downturn. The situation escalated further after Yemen’s Houthi group reportedly launched missile strikes on Israel, widening the scope of the conflict and raising concerns about prolonged instability in the region.

US-Iran War Developments Heighten Uncertainty​

According to reports, US President Donald Trump is considering a potential military operation to retrieve nearly 1,000 pounds of uranium from Iran. However, no final decision has been made, amid concerns over risks to American troops.

Tensions remain elevated as the Iran-backed Houthi group entered the conflict through attacks on Israel. Iran has also warned the US against pursuing any ground invasion.

Reports indicate that the US mobilized around 3,500 troops to the region over the weekend aboard the USS Tripoli.

Houthi spokesperson Yahya Saree stated that the group launched ballistic missile attacks targeting what it described as sensitive Israeli military sites, in support of Iran and allied Hezbollah forces in Lebanon.

US Markets Extend Losses, Dow Enters Correction Territory​

US stock markets also reflected the broader risk-off sentiment.

The Dow Jones Industrial Average declined by 253 points, or 0.6%, while S&P 500 futures and Nasdaq 100 futures slipped 0.5% each.

In the previous trading session, the Dow fell sharply by 793.47 points, or 1.73%, closing at 45,166.64 and entering correction territory.

The S&P 500 dropped 1.67% to a seven-month low of 6,368.85, while the Nasdaq Composite lost 2.15% to settle at 20,948.36.

On a weekly basis, the S&P 500 recorded its fifth consecutive decline, falling 2.1%. The Nasdaq dropped 3.2% over the same period, while the Dow eased 0.9%.

Summary​

Asian markets are under pressure as escalating geopolitical tensions in the Middle East weigh heavily on global investor sentiment. Sharp declines in key indices such as the Kospi and Nikkei, coupled with weak signals from GIFT Nifty and continued losses on Wall Street, highlight the cautious mood dominating financial markets.