Asian stock markets opened sharply lower on Wednesday as renewed fighting between the United States and Iran pushed oil prices higher, intensified inflation concerns and triggered a broader sell-off in global bonds and equities.
Tokyo and Seoul lead the retreat
Japan’s Nikkei 225 fell around 2.6 per cent during morning trading, with technology and semiconductor-related companies among the weakest performers.
South Korea’s KOSPI dropped more than 3 per cent, while the MSCI index of Asia-Pacific shares outside Japan declined approximately 1.5 per cent.
Hong Kong’s Hang Seng Index traded about 0.9 per cent lower. Shares in fast-fashion retailer Shein fell more than 3 per cent during their second day of trading following the company’s initial public offering.
Oil shock revives inflation fears
Brent crude rose approximately 1.3 per cent to nearly $96 a barrel after new US airstrikes against Iran raised concerns about further disruption to energy supplies through the Strait of Hormuz.
Higher energy prices could increase inflation across Asia, particularly in countries that depend heavily on imported oil. They could also make it more difficult for central banks to reduce borrowing costs.
Global bond yields continued to rise, with the yield on the US ten-year Treasury reaching its highest level in almost three years. Expectations that the Federal Reserve could increase interest rates in September added further pressure to Asian equities.
Indian shares open lower
India joined the regional retreat after its markets opened. The Nifty 50 fell around 0.9 per cent, while the BSE Sensex declined approximately 0.8 per cent.
Oil companies, airlines, tyre manufacturers and paint producers were among the weakest sectors, reflecting concerns that sustained increases in crude prices could raise costs and widen India’s import bill.
Investors are expected to remain focused on developments in the Middle East, oil prices and government bond yields throughout Wednesday’s trading session.
Newshub Editorial in Asia – 2 September 2026
Ask NF GPT
If you have an account with ChatGPT you get deeper explanations,
background and context related to what you are reading.
Recent Comments