Asian markets plunge, Kospi sees worst day in decades

March 04, 2026 (MLN): Asian markets tumbled sharply on Wednesday, led by a historic plunge in South Korea’s benchmark index, as escalating tensions in the Middle East triggered a broad risk-off wave across global financial markets.

South Korea’s KOSPI index nosedived more than 11%, marked its worst single-day performance in over two decades and extending heavy losses from the previous session.

The sharp decline prompted the Korea Exchange to temporarily suspend trading in the benchmark index.

A circuit breaker was also triggered on the tech-heavy KOSDAQ, which slumped more than 10% during the session.

Major chipmakers weighed heavily on the index, with SK Hynix falling 5% and Samsung Electronics sliding 7%.

The sell-off comes after a stellar run last year, when the KOSPI surged more than 75%, driven largely by robust demand for memory chips.

The rally extended into early this year, pushing the index to record highs amid strong gains in semiconductor heavyweights.

Losses spread across the region. Japan’s Nikkei 225 dropped 3.89%, while the broader TOPIX retreated over 4%.

In Australia, the S&P/ASX 200 fell 1.81%. Hong Kong’s Hang Seng Index lost nearly 2%, and mainland China’s CSI 300 slipped 1%.

Investors are also closely monitoring China’s annual parliamentary meetings, commonly referred to as the “Two Sessions,” according to CNBC.

The gathering includes the Chinese People’s Political Consultative Conference and the National People's Congress, which opens Thursday.

Chinese Premier Li Qiang is expected to outline key economic targets during the session, many of which were reportedly finalized at a December policy meeting.

Economic data from China added to the cautious mood. The official manufacturing Purchasing Managers’ Index (PMI) dropped to 49 in February, according to the National Bureau of Statistics.

The reading missed expectations of 49.1 and remained below the 50-mark that separates expansion from contraction.

The decline was attributed to factory shutdowns and shipment delays during an extended holiday period.

Oil markets surged as geopolitical risks intensified. U.S. crude futures rose 0.87% to $75.21 per barrel, while Brent crude jumped 5.43% to $81.96 per barrel.

Tensions escalated after a senior commander of Iran’s Revolutionary Guard reportedly claimed that the Strait of Hormuz a vital global oil transit route had been shut and warned that vessels attempting to pass through could be targeted.

In response, U.S. President Donald Trump stated that the U.S. Navy would escort tankers through the strategic waterway if required.

“No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” Trump said in a post on Truth Social, adding that further actions could follow.

Precious metals benefited from the heightened uncertainty. Spot gold climbed 1.85% to $5,180 per ounce, while spot silver surged more than 3% to $85.1 per ounce, reflecting increased demand for safe-haven assets.

Overnight in the United States, markets also endured sharp swings amid fears of a prolonged U.S.-Iran conflict.

The Dow Jones Industrial Average declined 403.51 points, or 0.83%, to close at 48,501.27. The S&P 500 fell 0.94% to 6,816.63, while the Nasdaq Composite dropped 1.02% to 22,516.69.

At intraday lows, the S&P 500 had fallen 2.5%, the Nasdaq was down roughly 2.7%, and the Dow had plunged more than 1,200 points about 2.6% before trimming losses by the close.

The sharp global market reaction underscores growing investor anxiety as geopolitical tensions threaten energy supply routes and heighten uncertainty across financial markets.

Copyright Mettis Link News