Asia-Pacific Stocks Slump as Prolonged US–Iran War Weighs; South Korea’s Kospi Falls 7%

Asia-Pacific stock markets tumbled at the open on Wednesday, 4 March 2026, as a prolonged US–Iran conflict weighed on sentiment, with South Korea’s Kospi leading the declines amid a continuing sell-off. Kospi fell 7.24%, the steepest drop in 19 months. The sell-off had already begun in Tuesday’s session. Investors in the region will monitor China’s annual parliamentary meetings known as the ‘Two Sessions’, scheduled to be held on Thursday, 5 March 2026. Chinese Premier Li Qiang will unveil a set of economic targets at the National People’s Congress, largely determined at the December 2025 meeting. According to CNBC International, Japan’s Nikkei 225 dropped 1.59% and the Topix fell 1.61%. Australia’s S&P/ASX 200 declined 1.81%. Hong Kong’s Hang Seng slid to around 25,448 from 25,768.08. The US stock market whirled amid concerns about the prolonged US–Iran conflict. President Donald Trump said the US Navy would escort tanker ships through the Strait of Hormuz if necessary. ‘Whichever happens, the United States will ensure energy flows to the world. The United States’ economic and military power is the largest on Earth,’ Trump wrote on Truth Social on Tuesday evening, 3 March 2026. The Dow Jones Industrial Average fell 403.51 points, or 0.83%, to 48,501.27. The S&P 500 slid 0.94% to 6,816.63. The Nasdaq Composite dropped 1.02% to 22,516.69. At session lows, the S&P 500 was down as much as 2.5%, the Nasdaq about 2.7%, and the Dow more than 1,200 points, or around 2.6%.