Asian Equities Fall Sharply as US-Iran Tensions Escalate

Asian Markets Plunge Amid Middle East Conflict

Key Takeaways

• Asian markets slumped on March 23, with key indices in Japan and South Korea plunging over 5% as the Middle East conflict entered its fourth week.
• Japan's Nikkei 225 fell nearly 5%, extending earlier losses, while the broader Topix declined 4.4%.
• South Korea's Kospi tumbled more than 6%, and the small-cap Kosdaq dropped around 5%.

Global Equities

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• Trading was briefly halted after the Kospi 200 futures index fell by over 5%.
• Australia's S&P/ASX 200 slipped 2.4% on Monday.
• Hong Kong's Hang Seng Index and the Hang Seng Tech Index both declined nearly 2% at the open.

Indian Markets

• The GIFT Nifty is down 298 points or 1.30% to 22,835, indicating a gap-down start for the Indian benchmark index on Monday.

US-Iran Conflict Update

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• President Donald Trump warned that the US would "obliterate" Iran's power infrastructure if Tehran did not fully reopen the Strait of Hormuz within 48 hours.
• Iran responded sharply, cautioning that it would target energy and desalination facilities across the Gulf if Washington follows through on its threat.

Oil Prices

• Brent crude edged down 0.25% to $111.97 per barrel, while West Texas Intermediate slipped 0.6% to $97.64 per barrel.

US Stock Market

• Overnight in the US, stock futures remained largely unchanged, with the Dow Jones Industrial Average trading flat, while the S&P 500 dipped 0.1% and the Nasdaq Composite futures declined 0.2%.
• For the week, all three major indices ended in negative territory, with the S&P 500 dropping over 1.5% and slipping below its 200-day moving average for the first time since May.