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Markets Score 75 Bearish

Asian Markets Drop Amid Escalating Geopolitical Tensions

Apr 02, 2026 08:47 UTC
^HSI, ^N225, CL=F
Immediate term

Asian stocks fell as optimism for a resolution to the Middle East conflict waned following U.S. President Donald Trump's recent remarks. The region's markets experienced a broad sell-off amid heightened geopolitical risks.

  • Asian stocks fell as optimism for a resolution to the Middle East conflict waned following U.S. President Donald Trump's remarks.
  • The Hang Seng Index dropped 0.70 percent to 25,116.53, and the Shanghai Composite fell 0.74 percent to 3,919.29.
  • Japan's Nikkei 225 slumped 2.38 percent to 52,463.27, while South Korea's Kospi plunged 4.47 percent to 5,234.05.
  • Crude oil prices surged over 6 percent, while gold prices fell nearly 3 percent toward $4,600 an ounce.
  • New Zealand's S&P/NZX-50 index rose 0.59 percent to 12,902.15, recovering from the previous day's losses.
  • Trump's comments raised fears of further damage to Gulf energy infrastructure, with Iran's Revolutionary Guard threatening U.S. tech firms.

Asian markets experienced a significant decline on Thursday as hopes for a resolution to the Middle East conflict diminished following U.S. President Donald Trump's prime-time address. Trump's comments, which suggested continued military action against Iran, heightened concerns about prolonged instability in the region. The Hang Seng Index in Hong Kong fell 0.70 percent to 25,116.53, while the Shanghai Composite dropped 0.74 percent to 3,919.29. Japan's Nikkei 225 slumped 2.38 percent to 52,463.27, and South Korea's Kospi plunged 4.47 percent to 5,234.05. The broader geopolitical uncertainty led to a risk-off sentiment across the region, with investors selling off equities in defense and energy sectors. Crude oil prices surged over 6 percent, while gold prices fell nearly 3 percent toward $4,600 an ounce. The U.S. dollar and bond yields also rose, reflecting increased demand for safe-haven assets. Despite the regional sell-off, New Zealand's S&P/NZX-50 index rose 0.59 percent to 12,902.15, recovering from the previous day's losses. Trump's remarks, which included a warning to strike Iran 'back to the Stone Ages,' raised fears of further damage to Gulf energy infrastructure. The comments came after Iran's Revolutionary Guard issued threats against U.S. tech firms operating in the Middle East. While U.S. stocks closed higher overnight, the optimism surrounding a potential ceasefire was short-lived, as Trump denied any progress in securing a deal. The market reaction underscores the sensitivity of global equities to geopolitical developments, particularly in energy-dependent economies. Investors are now closely monitoring further statements from both U.S. and Iranian officials for signs of de-escalation.

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