Asian Stock Markets Plunge Collectively, Investors Concerned Over Middle East Conflict
Jakarta, CNBC Indonesia - The majority of Asia-Pacific stock markets weakened during trading on Friday (27/3/2026), following the volatile performance on Wall Street overnight, amid uncertainties in messages regarding the Middle East conflict between Donald Trump and Iran.
According to CNBC.com, Trump decided to extend the deadline for the attack by 10 days until 6 April to provide room for negotiations. This decision was reportedly taken at the request of the Islamic Republic of Iran’s government as part of efforts to de-escalate tensions.
Trump stated that the extension was granted in exchange for 10 oil tankers crossing the Strait of Hormuz as a “gift” from Tehran. He also emphasised via a post on Truth Social that the delay aims to open opportunities for a diplomatic resolution.
In his statement, Trump said discussions are ongoing and progressing very well, despite differing reports from the media. Nevertheless, Washington has expressed a desire to end the conflict through negotiations, while Tehran denies any direct talks with the United States.
Oil prices had strengthened on Thursday before showing weakness as indications emerged of progress towards a US-Iran peace agreement. The West Texas Intermediate contract for May delivery fell 1.3% to US$93.29 per barrel, while Brent crude oil closed at US$108.01 per barrel.
In the Asian region, Australia’s S&P/ASX 200 index dropped 0.42% at the opening of trading. In Japan, the Nikkei 225 weakened by 0.9%, and the Topix corrected by 0.4%.
In South Korea, the Kospi index plunged 3%, and the Kosdaq fell 1.5%. Meanwhile, Hang Seng Index futures were at 24,782, lower than the previous close of 24,856.43.
From China, market participants are awaiting the release of industrial profit data for the first two months of 2026, which could provide an early picture of the manufacturing sector’s condition. This data is considered important amid fierce competition and weak demand.
Meanwhile, US futures markets strengthened as concerns over a surge in oil prices eased. Dow Jones Industrial Average futures rose 175 points or 0.4%, while the S&P 500 and Nasdaq 100 each gained nearly 0.4%.
Despite this, Wall Street’s major indices closed lower in the previous session. The S&P 500 fell 1.7%, marking its largest daily decline since early 2026, the Nasdaq Composite dropped 2.4% and entered correction territory, and the Dow Jones fell 1.01%.