- Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%.
- South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.
- Thailand, India, South Korea, and the Philippines are especially vulnerable to higher Oil prices amid the Middle East war.
Asian equities fall for a second consecutive session as escalating tensions in the Middle East shook investor sentiment and revived concerns over energy-driven inflation. The MSCI Asia Pacific Index slid as much as 4%, trading near 238.50 at the time of writing, its sharpest drop since April last year, following joint US and Israeli strikes on Iran and Tehran’s retaliatory actions against neighboring states.
South Korean markets led the regional selloff on Wednesday. The Korean Won (KRW) weakened beyond 1,500 per dollar for the first time in 17 years, while the KOSPI plunged more than 10%, prompting the Korea Exchange to activate circuit breakers and temporarily halt trading.
South Korea’s KOSPI slumped 10.71% to trade around 5,170 at the time of writing. Moreover, Japan’s Nikkei 225 dropped 3.7% to around 54,200. Hong Kong’s Hang Seng Index declined 3.13% to slip below 25,000. Meanwhile, China’s Shanghai Composite Index fell 1.0% below 4,100, and the Shenzhen Component Index eased 0.73% to near 13,920.
Surging Oil prices and persistent geopolitical risks fueled volatility across markets. Invesco flagged Thailand, India, South Korea, and the Philippines as particularly vulnerable to higher Oil costs, while Malaysia may prove more resilient. The firm expects limited long-term damage to Asian equities but maintains a cautious stance on currencies such as the Indian Rupee and Korean Won.
