Asian markets today declined sharply on Monday, March 30, as the Middle East conflict entered its fifth week, with tensions escalating despite ongoing diplomatic efforts.
South Korea’s Kospi tumbled more than 5%, while the small-cap Kosdaq dropped 3.97%.
Japan’s Nikkei 225 fell 3.97%, and the Topix declined 3.9%. Policymakers at the Bank of Japan discussed the need for further rate hikes during their March meeting, as rising oil prices tied to the Middle East conflict continue to fuel inflationary pressures.
Australia’s S&P/ASX 200 slipped 1.46% in early trade on Monday. Meanwhile, Hong Kong’s Hang Seng Index futures were at 24,630, below the benchmark’s previous close of 24,951.88.
Meanwhile, trends in GIFT Nifty also signal a gap-down opening for the Indian benchmark indices. The GIFT Nifty was trading near the 22,551 level, reflecting a 266-point discount to the previous close of Nifty futures.
Speaking on the reason for the Asian stock market crash, Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, said the Asian markets have opened with significant cuts, with South Korea’s Kospi and Japan’s Nikkei declining the most.
“The broad-based weakness comes as the Middle East conflict enters its fifth week, with fresh escalation after Yemen’s Houthi movement reportedly launched missile strikes on Israel. This marks a widening of the conflict footprint and has heightened fears of prolonged instability in the region,” Hariprasad added.
US-Iran war
According to a Wall Street Journal report, US President Donald Trump is considering a potential military operation to retrieve nearly 1,000 pounds of uranium from Iran.
However, Trump has yet to make a final decision, as concerns remain over the risks posed to American troops, though he is broadly open to the proposal, the report added.
Tensions in the Middle East showed little sign of easing, with the Yemen-based, Iran-backed Houthi group entering the conflict through attacks on Israel. Iran has also cautioned the US against pursuing any ground invasion.
Meanwhile, the US was reportedly mobilizing around 3,500 troops to the region over the weekend aboard the USS Tripoli.
In a post on X, Houthi spokesperson Yahya Saree said the group had fired a barrage of ballistic missiles at what it described as sensitive Israeli military sites, in support of Iran and allied Hezbollah forces in Lebanon.
US stock market
US stock market indexes Dow Jones Industrial Average declined by 253 points, or 0.6%, while S&P 500 futures and Nasdaq 100 futures each slipped 0.5%.
In the previous session, the Dow Jones Industrial Average dropped sharply, entering correction territory. The 30-stock index fell 793.47 points, or 1.73%, to close at 45,166.64. The S&P 500 declined 1.67% to end at a seven-month low of 6,368.85, while the Nasdaq Composite lost 2.15% to settle at 20,948.36.
For the week, the benchmark S&P 500 recorded its fifth consecutive weekly loss, falling 2.1%. The tech-heavy Nasdaq slid 3.2% over the same period, while the blue-chip Dow eased 0.9% for the week.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
