Asian markets fall on geopolitical concerns

Saturday, 14 March 2026 00:00 - - {{hitsCtrl.values.hits}}

Asian equity markets closed lower on Friday as rising oil prices and escalating geopolitical tensions in the Middle East weighed on investor sentiment across the region.

The MSCI Asia-Pacific index declined about 1.8% during the session, extending losses for the week to roughly 2.2% as concerns about energy supply disruptions and prolonged regional instability triggered broad-based selling.

Japan’s Nikkei 225 fell more than 1%, while the broader TOPIX index also retreated as weaker corporate results from Honda added to cautious market sentiment.

South Korea’s Kospi dropped nearly 1.7%, reflecting losses across technology and export-oriented stocks, while Hong Kong’s Hang Seng Index fell 251 points, or about 0.98%.

Other regional markets largely followed the downward trend. Equity benchmarks in China, Taiwan and several Southeast Asian markets also traded lower, although Singapore posted marginal gains in a limited rebound.

Investor sentiment has been heavily influenced by developments in the Middle East, with Brent crude oil hovering near the $ 100 per barrel level amid fears of supply disruptions and shipping risks in key energy transit routes.

The spike in energy prices has raised concerns about inflationary pressures and the potential impact on global economic growth.

Currency markets also reflected heightened volatility, with the Japanese yen weakening to around 159.69 per dollar, its lowest level since July 2024, increasing speculation about possible intervention by Japanese authorities.

Technology stocks were among the weakest performers across the region as investors reduced exposure to risk assets amid rising geopolitical uncertainty.