Asian Markets in the Red, Kospi Plunges 4% Despite Trump Delaying Iran Attack

Asia-Pacific stock markets opened lower in trading on Monday (3/8/2026), as market participants monitored the latest developments regarding geopolitical tensions in the Middle East. Investor sentiment remained overshadowed by uncertainty despite signals of de-escalation following a statement by United States (US) President Donald Trump regarding Iran. In Japan, the Nikkei 225 index fell 1.43% in early trading, while the Topix index corrected by 1.45%. The decline reflected investors’ cautious stance on global market prospects amid geopolitical dynamics. In South Korea, the Kospi index plunged 4.57% at the market opening. Meanwhile, the small-cap Kosdaq stock index also weakened by 1.67%. In Australia, the benchmark S&P/ASX 200 index fell 0.36% at the start of the trading session. The weakness occurred as investors reduced exposure to risky assets amid heightened market uncertainty. Market sentiment was also influenced by a statement from US President Donald Trump on Sunday local time, who said that a planned attack on Iran had been cancelled. The decision was made after Tehran and several neighbouring countries requested that the attack be postponed. Trump also said the agreement would include the immediate, full, and comprehensive opening of the Strait of Hormuz, as well as an end to Iran’s nuclear threat. The statement raised hopes for an easing of tensions in the region, which is a vital route for global energy trade.