Asian stocks mostly lower after Wall Street's worst day since start of Iran war

March 27, 2026 - 07:31

Financial markets across the Asia-Pacific region traded mostly lower on Friday, mirroring a severe downturn on Wall Street. The negative sentiment stemmed from growing investor doubts over a potential de-escalation in Middle East tensions, which triggered the worst single-day decline for U.S. stocks since the onset of the recent Iran conflict.

In early trading, Japan's benchmark Nikkei 225 index fell 1.2%, settling at 52,982.86. The broad decline followed a punishing session for American equities. On Thursday, the S&P 500 plummeted 1.7%, its steepest drop since January, closing at 6,477.16. This sharp correction was fueled by a shift in market mood, as earlier hopes for a quick geopolitical resolution evaporated, prompting a flight to safety.

The sell-off reflects heightened anxiety among global investors reassessing risks. Market participants are now closely monitoring geopolitical developments and their potential impact on global energy supplies and economic stability. The volatility underscores how swiftly sentiment can change, with caution prevailing as traders await clearer signals. Other regional markets were also expected to face pressure in the wake of the U.S. market's significant retreat.