Asian Stock Markets Today: Nikkei, Kospi Slide Over 2.5% Amid Iran War Escalation, Soaring Crude Oil Prices - NDTV Profit

Asian markets opened the week under heavy pressure, with Japan’s Nikkei and South Korea’s Kospi both sliding more than 2.5%. The selloff followed an escalation in the Iran conflict, which has driven crude oil prices sharply higher. For import-dependent economies in the region, rising energy costs feed directly into production and consumer prices, amplifying worries about economic growth.

This risk-off mood reflects a familiar market pattern: geopolitical uncertainty prompts investors to reassess exposure, particularly in equities, while capital often rotates toward assets perceived as safer. When oil surges, the calculus becomes more complex because it introduces an inflationary shock that central banks may find difficult to ignore, potentially slowing the path toward policy easing.

Going forward, market direction will hinge on whether diplomatic efforts can de-escalate tensions, and on how sustained the crude oil rally proves to be. Investors will also monitor any policy responses from major central banks to ensure inflation expectations remain anchored. Until clarity emerges, volatility across Asian indices is likely to remain elevated.