Asian Stocks Plunge, Iran War-Related Inflation Fears!
Asian stocks fell sharply on Tuesday, with the region's major indices erasing all gains recorded throughout 2026. The decline was triggered by a surge in energy prices due to the war in Iran, which has raised concerns about inflation and slower economic growth.
The MSCI Asia Pacific Index fell as much as 1.1%, with major stocks like Samsung Electronics and SK Hynix among the biggest decliners. The MSCI Emerging Markets Index also erased gains recorded since the start of 2026.
This year, Asian markets have performed very well, primarily because investors continued to invest in artificial intelligence infrastructure stocks in the region. However, with the ongoing conflict in the Middle East, many investors are now starting to reduce risk.
Asian countries, including South Korea, Japan, and India, are particularly vulnerable to oil price spikes due to their dependence on energy imports from Middle Eastern countries. This has traders concerned about the negative impact of higher energy costs on corporate profits and the possibility of interest rate hikes to curb inflation. (asd)
Source: Newsmaker.id
