Asian markets dip amid middle east tensions

March 02, 2026 (MLN): Asian markets opened the week on a weaker note Monday as escalating geopolitical tensions in the Middle East rattled markets, triggering sharp declines in airline stocks while energy shares advanced on surging oil prices.

Airline companies led regional losses amid airspace disruptions and airport closures linked to rising conflict risks.

Singapore Airlines dropped more than 6%, marked the steepest decline among major carriers, according to CNBC.

Japan’s All Nippon Airways and Japan Airlines each fell over 4%, while Hong Kong-based Cathay Pacific lost 3.63%.

Australia’s Qantas and Taiwan’s EVA Air also declined more than 4% as investors priced in higher fuel costs and potential operational disruptions.

Broader equity benchmarks across Asia traded lower as risk appetite weakened. Japan’s Nikkei 225 slipped 1.2%, recovering slightly from earlier declines, while the broader Topix index fell 1.34%.

Hong Kong’s Hang Seng Index opened 1.15% lower, and mainland China’s CSI 300 edged down 0.25%.

Australia’s S&P/ASX 200 declined 0.48%, with gains in oil and gold mining stocks helping limit overall losses.

Oil prices surged after tensions intensified between the United States, Israel, and Iran, fueling concerns about global supply disruptions.

Crude futures initially jumped nearly 8% before moderating to gains of around 4%.

West Texas Intermediate crude traded near $69.68 per barrel, while Brent crude stood at $76.13. Gold prices also climbed 2.3% as investors shifted toward safe-haven assets.

Rising crude prices supported energy stocks across the region. Australia’s Woodside Energy, Japan’s Inpex, and Hong Kong-listed China National Offshore Oil Corporation each gained more than 5%, outperforming the broader market.

Defense-related shares also moved higher amid heightened geopolitical uncertainty. Japan’s Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI advanced over 1%, while Singapore’s ST Engineering rose about 2%. Major defense stocks in South Korea were not traded due to a public holiday.

Meanwhile, U.S. equity futures declined in overnight trading following weekend military strikes in Iran.

Futures linked to the Dow Jones Industrial Average fell 517 points, or 1%, while S&P 500 and Nasdaq-100 futures each dropped more than 1%, signaling continued global market caution.

The latest market moves underscore growing investor sensitivity to geopolitical developments, with aviation stocks pressured by cost and disruption risks, while energy and defense sectors benefit from rising commodity prices and heightened security concerns.

Copyright Mettis Link News