Investor Concerns Weigh on Asian Stock Markets

Jakarta, CNBC Indonesia — The Asia-Pacific stock markets weakened amid lingering shadows of global geopolitical tensions in the Middle East on Tuesday (31/3/2026). Investors are concerned about the effects of the war on the economy due to rising oil prices.

Australia’s S&P/ASX 200 index fell 0.12% at the start of Asian trading.

Meanwhile, Japan’s Nikkei 225 index dropped 0.84%, while the broader Topix index fell 0.57%.

South Korea’s benchmark Kospi index declined 2.4%, and the small-cap Kosdaq index fell 0.77%.

Meanwhile, Hong Kong’s Hang Seng index futures were at 24,683, compared to the index’s last close at 24,750.8.

Citing CNBC International, US President Donald Trump has escalated his threats by stating that his country will destroy power plants, oil wells, and Iran’s Kharg Island if the strategically vital Strait of Hormuz remains closed and no peace agreement is reached to end the war.

The statement comes as the war in Iran enters its fifth week and the Trump administration considers sending ground troops to seize Kharg Island, a major fuel hub that facilitates 90% of Iran’s crude oil exports.

Shipping traffic through the Strait of Hormuz, which previously carried one-fifth of the world’s total seaborne oil before this conflict, has nearly come to a complete halt since the US and Israel launched attacks on Iran on 28 February 2026.

For context, West Texas Intermediate (WTI) oil prices rose more than 3% and closed below US$103 per barrel on Monday, breaching the US$100 level for the first time since 2022. The May futures contract for Brent crude, the international benchmark, rose 0.19% or 21 cents to close at $112.78 per barrel. WTI last rose 2.8% to 105.8.

Overnight in the US, the S&P 500 index fell 0.39% to close at 6,343.72, marking the third consecutive declining session, while the Nasdaq Composite dropped 0.73% to close at 20,794.64. The Dow Jones Industrial Average bucked the trend, rising 0.11% to 45,216.

US stock futures were little changed, with S&P 500-related futures down less than 0.1%, Nasdaq 100 futures down 0.1%, and Dow Jones Industrial Average futures up 23 points, or less than 0.1%.