Middle East Conflict Persists, Asian Stocks Slump on Risk Aversion, Local Regions Show Resilience

TradingKey - During the Asian trading session, Asia-Pacific equity markets plummeted, with the Nikkei 225 falling more than 3.3% to 56,124 and the Topix index dropping 3.3% to 3,769 points. South Korea's KOSPI index closed down sharply by 7.2% at 5,792.2 points. The Shanghai Composite Index fell more than 1.4%, the Shenzhen Component Index dropped over 3%, and the Hang Seng Index declined by more than 1%.

The stock markets of Singapore and Malaysia showed resilience, with both the FTSE Straits Times Index and the FTSE Bursa Malaysia Index rising more than 0.7%.

International oil prices rose by more than 2% again, while gold's gains narrowed and silver fell over 5%.

Notably, the KOSPI recorded its largest single-day decline since August 5, 2024, with Hyundai Motor falling nearly 12% and SK Hynix dropping more than 11%.

Tensions in the Middle East show no sign of easing; reports from Iran on March 2 local time indicated that Jabbari, a commander of the Islamic Revolutionary Guard Corps, stated that any vessel attempting to pass through the Strait of Hormuz would be destroyed, adding that Iran would not allow a single drop of oil to leave the region.

A senior U.S. military official stated that Iran has not patrolled the Strait of Hormuz or implemented any blockade. There is currently no evidence of sea mines in the relevant waters, though merchant ships are navigating the area with caution.

The market has further increased oil price expectations, with related assets providing localized support to global equities, though the broader market remains under pressure.