U.S. and Israel conduct airstrikes on Iran, causing Asian stock markets to fluctuate sharply

The large-scale airstrikes by the United States and Israel against Iran caused Asian stock markets to continue declining after the opening on March 2. This sharp drop was due to escalating tensions in the Middle East and increased risk-averse sentiment among investors.

Japan’s Nikkei 225 index plummeted about 1,500 points at the start of trading, closing at 57,285 points; the Shanghai Composite Index also opened at 4,151.8 points, down 0.27% from the previous trading day. This was the result of continued selling pressure from most Asian countries following the sudden change in Middle Eastern tensions. The Hong Kong Hang Seng Index also opened down 1.22% at 26,305.58 points.

Under the new circumstances, soaring oil prices led to increased demand for safe-haven assets, triggering the stock market decline. Nikkei News analyzed that this market reaction was “related to the US and Israel’s attack on Iran and the surge in oil prices, which triggered risk-averse behavior among investors.”

Volatility in the foreign exchange market also increased. Due to the strengthening of the US dollar, the USD/JPY exchange rate rose slightly to around 156.7 yen, driven by the urgent need to secure dollar assets, which caused the yen to weaken.

This trend indicates that if Middle Eastern tensions remain unstable, volatility in Asian markets is likely to continue intensifying. Experts advise investors to closely monitor the situation and exercise caution.