Asia markets slide on Trump’s Iran remarks

April 02, 2026 (MLN): Asia markets reversed early gains on Thursday, slipping into negative territory as investors reacted to fresh geopolitical signals from Donald Trump regarding the ongoing Iran conflict.

In a national address, Trump stated that U.S. objectives in Iran were “almost met,” while warning that Washington could escalate its military response in the coming weeks.

He emphasized that the U.S. holds a strong position in the conflict and indicated the possibility of intensified action within the next two to three weeks.

His remarks came shortly after claims that Iran’s “new regime president” had approached the United States for a ceasefire, an assertion denied by Tehran, according to CNBC.

Trump further noted that any consideration of a ceasefire would depend on the Strait of Hormuz being “open, free, and clear,” according to a post on Truth Social.

However, earlier reports suggested he had shown some flexibility in ending the military campaign even if the strategic waterway remained closed.

Regional markets reacted sharply to the heightened geopolitical uncertainty. South Korea’s Kospi dropped 4.25%, while the Kosdaq index plunged 4.71%, reversing earlier gains seen at the open.

In Japan, the Nikkei 225 declined 2.3% and the broader Topix index fell 1.5%.

Australia’s S&P/ASX 200 also slipped 1.11% after initially trading in positive territory, while Hong Kong’s Hang Seng Index lost 1.08% and China’s CSI 300 edged down 0.77%.

Meanwhile, U.S. stock futures pointed to a weaker open despite gains in the previous session.

Futures linked to the S&P 500 and Nasdaq-100 dropped more than 1%, while Dow Jones Industrial Average futures fell 439 points, or 0.94%.

This followed a positive overnight performance on Wall Street, where the S&P 500 rose 0.72%, the Nasdaq Composite gained 1.16%, and the Dow Jones Industrial Average added 0.48%.

Investor sentiment remains fragile amid rising geopolitical tensions, particularly concerns surrounding the Strait of Hormuz, a critical global oil transit route.

Markets are likely to remain volatile as participants closely monitor further developments in the U.S.-Iran situation.

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