Asia markets slide on Iran US tensions

March 27, 2026 (MLN): Asia markets traded lower on Friday, mirroring losses on Wall Street after a volatile overnight session, as uncertainty over a potential Middle East peace agreement continued to cloud investor sentiment.

Market participants remained cautious amid conflicting signals from the United States and Iran regarding ongoing negotiations.

Donald Trump declared a 10-day extension to a previously set deadline tied to possible strikes on Iran’s energy infrastructure, now pushed to April 6, to allow more time for diplomacy, according to CNBC.

Trump stated that the extension followed a request from Tehran and was linked to oil tankers passing through the strategically important Strait of Hormuz.

In a post on Truth Social, he maintained that discussions were progressing well despite conflicting reports.

While Washington has recently indicated a preference for a negotiated outcome, Tehran has denied holding direct talks with the U.S. Reports suggest Iran rejected a U.S.-backed proposal and instead presented its own conditions, including guarantees against renewed attacks by the U.S. and Israel, along with recognition of its authority over the Strait of Hormuz.

Oil prices declined as concerns over supply disruptions eased. West Texas Intermediate for May delivery fell 1.8% to $92.82 per barrel, while Brent crude dropped 1.92% to $105.9 per barrel.

Across the region, equities remained under pressure. South Korea led the losses, with the KOSPI falling 3.6% and the KOSDAQ down 2%. Australia’s S&P/ASX 200 slipped 0.42% in early trade.

In Japan, the Nikkei 225 declined 1.6%, while the broader TOPIX lost 0.8%. Hong Kong’s Hang Seng Index edged 0.2% lower, and mainland China’s CSI 300 dropped 0.4%.

Meanwhile, China’s industrial sector showed strength. Data from the National Bureau of Statistics of China revealed industrial profits rose 15.2% year-on-year in January–February, extending the rebound from December’s 5.3% increase.

U.S. stock futures moved higher, supported by easing oil price concerns. Futures tied to the Dow Jones Industrial Average rose 0.4%, while S&P 500 and Nasdaq-100 futures gained nearly 0.4% each.

Overnight, U.S. markets saw notable declines, with the S&P 500 falling 1.7%, the Nasdaq Composite dropping 2.4% into correction territory, and the Dow Jones Industrial Average losing 1.01%.

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