Asian markets extend losses as Iran war rages on; Indices fall up to 2%
Published on 03/03/2026 06:29 AM
Asian markets extend losses as Iran war rages on; Indices fall up to 2%Australia’s 10-year yield jumped early Tuesday, as Reserve Bank Governor Michele Bullock said the central bank was “very alert” to the potential implications for inflation expectations from the Middle East conflict and is “well positioned” for a policy response if required. The Yen trades at levels of 157 against the US Dollar.By CNBCTV18.com March 3, 2026, 6:29:35 AM IST (Published)2 Min Read(Photo Credit : Reuters)Markets in the Asia-Pacific continued to extend Monday's losses as the war in Iran raged on for the fourth day.
The KOSPI in South Korea resumed trading after a public holiday on Monday and is down 1.6%, while the Nikkei in Japan is also trading with losses of 0.8%. Benchmark indices in Australia are down, while futures in China were pointing to a start with modest gains.
Concerns that rising energy costs will send inflation higher and curtail monetary easing weighed on the bond markets as well. The US Dollar, along with crude oil prices have held on to their gains from Monday.
“There are more questions than answers right now,” said Chris Larkin at E*Trade from Morgan Stanley. “A stabilizing energy picture could have a positive ripple effect, while concerns about a longer-term disruption could have the opposite.”
Asian equities are down despite a recovery on Wall Street overnight from the lows of the session. Most of the Asian economies are net importers of oil and worries of a long-term supply disruption and the consequent economic impact continues to weigh on the stock market as well.
Indian equities are closed on Tuesday on account of a public holiday.
Australia’s 10-year yield jumped early Tuesday, as Reserve Bank Governor Michele Bullock said the central bank was “very alert” to the potential implications for inflation expectations from the Middle East conflict and is “well positioned” for a policy response if required. The Yen trades at levels of 157 against the US Dollar.
Morgan Stanley strategists led by Mike Wilson see the conflict in the Middle East as unlikely to derail their bullish view on US stocks, barring a sharp and sustained surge in oil.Continue ReadingTagsasian marketsKOSPINikkei 225