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Asian Equities · Geopolitics · Oil Prices · Safe Havens
Escalating geopolitical tensions in the Middle East, marked by increased Iranian missile and drone attacks and Israeli retaliations, sent shockwaves through Asian equity markets on March 4, 2026.
South Korea's Kospi index suffered the most, plunging 12% by midday, prompting two trading suspensions, with major companies like Samsung Electronics and Pan Ocean experiencing significant drops of 10% and 19% respectively. Other key regional indices also saw substantial declines, including Japan's Nikkei (-3.9%), Hong Kong's Hang Seng (-2.8%), and Singapore's FTSE Straits Times (-2.1%).
Concurrently, global oil prices rose, with West Texas Intermediate up 0.5% to $74.96 per barrel and Brent crude adding 0.8% to $82.07, driven by supply concerns and higher fuel costs. This situation, as noted by DBS Group Research, creates a 'stagflation-type dilemma' for energy-import dependent nations.
Investors flocked to safe-haven assets, pushing spot gold up 1.3% to $5,151.96 per troy ounce and silver up 2.3% to $83.88 an ounce, while Asian currencies weakened against the U.S. dollar.
