Asian Markets Hit by Middle East Tensions

Mar 4, 2026

66 min

Mar 4, 2026 02:30

South Korean stocks plunge 6%, Japan's Nikkei down 2.5%

## South Korean and Japanese Markets Decline

Asian stock markets experienced significant declines on Wednesday due to ongoing unrest in the Middle East. South Korea's Kospi index fell over 6%, while Japan's Nikkei index dropped by 2.5%.

## Impact on US Markets

The turmoil also affected US markets, with the S&P 500, Dow Jones, and Nasdaq all closing lower on Tuesday. The S&P 500 decreased by 0.9%, the Dow Jones by 0.8%, and the Nasdaq by 1%. The Russell 2000, representing smaller stocks, saw a sharper decline of nearly 1.8%.

## Market Volatility and Investor Concerns

The trading session was marked by high volatility, with the S&P 500 and Dow experiencing significant intraday losses before partially recovering. Investors are concerned about the economic impact of escalating conflicts, particularly following US-Israeli military actions in Iran.

## Rising Oil Prices and Inflation Fears

The uncertainty has led to increased oil prices, especially with potential disruptions in the Strait of Hormuz, heightening inflation concerns. This has shifted investor focus towards defense and energy stocks, while tech and growth stocks have lagged.

## Treasury Yields and Volatility Indices

Treasury yields rose, and volatility indices spiked, indicating a move towards safer investments amid inflation worries. The session highlighted how geopolitical events can quickly alter market dynamics, affecting growth expectations and commodity-linked inflation.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents