Asian equity markets fell sharply on Friday as rising geopolitical tensions in the Middle East rattled investor sentiment across the globe. The sudden military conflict between Israel and Iran, involving preemptive airstrikes by Israeli forces on Iranian nuclear targets, triggered a risk-off mood among global investors.
Japan’s Nikkei 225 was the hardest hit among major Asian indices, plunging 1.47%, or 561 points, to close at 37,612.01. South Korea’s KOSPI also dropped sharply, down 1.41% to 2,878.74, while Taiwan’s index fell 1.17%, shedding 259.95 points.
Other regional indices also closed in the red:
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NZX 50 (New Zealand) was down 0.60%
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STI (Singapore) lost 0.46%
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ASX 200 (Australia) edged down 0.33%
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Hang Seng (Hong Kong) fell 0.31%
The market decline comes as investors brace for broader implications of the escalating conflict, including potential disruptions in oil supply routes and a surge in global crude prices, which could stoke inflation concerns further.
Traders and analysts now await further updates from global leaders as well as economic data releases to gauge the medium-term impact of the military standoff on financial markets.
