Asian Markets Slump This Morning, Following Wall Street
Asia-Pacific stock markets opened weaker in trading on Thursday (4/6/2026), following the decline on Wall Street amidst increasing geopolitical tensions between the United States and Iran. According to CNBC, this situation has also pushed oil prices higher, triggering market concerns regarding rising energy costs and global inflationary pressures.
The latest tensions emerged after Kuwait International Airport was reported to have been targeted by an Iranian attack early Wednesday morning. This incident occurred a day after the US Central Command (CENTCOM) stated it had intercepted several Iranian ballistic missiles and drones, while also launching retaliatory strikes, described as a self-defence action, on Qeshm Island in the Persian Gulf.
The situation has intensified after Israeli Prime Minister Benjamin Netanyahu stated that Israel and the US are prepared to launch further attacks against Iran if necessary. In an exclusive interview with CNBC, Netanyahu warned that Iran is “playing with fire” and must consider the military readiness of both nations.
The rising risk of conflict in the Middle East has driven a rally in global oil prices. West Texas Intermediate (WTI) futures surged by more than 2% to close at US$96.02 per barrel on Wednesday, while Brent crude rose by nearly 2% to a position of US$97.81 per barrel.
In the Asian region, South Korea’s Kospi index corrected by 2% as trading resumed following a holiday; however, the Kosdaq small-cap index actually strengthened by more than 2%.
In Japan, the Nikkei 225 index fell 1.4% after hitting record highs in the previous session. Meanwhile, the Topix index weakened by 0.91% as investors engaged in profit-taking amid increasing global uncertainty.
The Australian market also moved into the red, with the S&P/ASX 200 index dropping 0.84%. Meanwhile, Hang Seng index futures in Hong Kong stood at 25,312, lower than the previous close of 25,633.21.
Negative sentiment was also reflected in US futures trading. S&P 500 futures fell 0.5%, while Nasdaq 100 futures weakened by 0.6%, whereas Dow Jones Industrial Average futures remained relatively flat with a slight upward tendency.
During Wednesday’s trading in the US, the Dow Jones Industrial Average plummeted 620.72 points or 1.21% to the level of 50,687.07. The S&P 500 index fell 0.74% to 7,553.68, while the tech-heavy Nasdaq Composite corrected by 0.89% to 26,853.98.
Market participants are now closely monitoring developments in the Middle East conflict, which has the potential to affect the stability of the global energy supply. The surge in oil prices due to geopolitical tensions is seen as a factor that could complicate central banks’ efforts to keep inflation under control.