A currency dealer works in front of an electronic board displaying the Korea Composite Stock Price Index (KOSPI) and a news report on the U.S.-Israeli conflict with Iran, at the dealing room of a bank, in Seoul, South Korea, March 4, 2026.
| Photo Credit:
KIM HONG-JI
Asian shares fell further on Wednesday after the global sell-off for stocks hit Wall Street, with South Korea’s benchmark plunging 8 per cent, while oil prices climbed even higher.
Worries over the widening war with Iran have hammered most world markets. Higher oil prices and how much they might worsen inflation are among the central fears for investors. More spikes for oil prices may grind down the global economy and sap corporate profits.
South Korea’s Kospi led regional losses, tumbling 8.1 per cent to 5,321.38, causing trading to be suspended, as energy security concerns vanquished optimism over the boost big tech companies like Samsung Electronics and SK Hynix are getting from expanding use of artificial intelligence.
In Tokyo, the Nikkei 225 shed 3.4 per cent to 54,346.73. Japan, like South Korea, depends heavily on imports of oil and natural gas from the Middle East that are now stranded in the Persian Gulf.
Elsewhere in Asia, the Hang Seng in Hong Kong fell 1.4 per cent to 25,408.27 and the Shanghai Composite index was down 0.5 per cent at 4,100.46.
In Australia, the S&P/ASX 200 declined 1.8 per cent to 9,130.90.
Taiwan’s Taiex lost 2.9 per cent.
On Tuesday, the S&P 500 finished with a loss of 0.9 per cent after dropping as much as 2.5 per cent on concerns over the war’s damage to the economy. The Dow Jones Industrial Average pared its loss to 0.8 per cent, and the Nasdaq composite fell 1 per cent.
Higher inflation partly due to the war could tie the Federal Reserve’s hands and keep it from cutting interest rates. The Fed lowered rates several times last year and indicated more cuts were to come in 2026. That would help boost the economy and job market, but lower rates can also worsen inflation.
The price of US benchmark crude oil climbed 1.2 per cent to $75.46 per barrel. Brent crude, the international standard, gained 1.5 per cent to $82.61 per barrel.
The dollar was nearly unchanged at 157.55 Japanese yen. The euro slipped to $1.1599 from $1.600.
Published on March 4, 2026