Asian equity markets closed out March 2026 on shaky ground, with most regional indexes posting significant monthly losses as the ongoing U.S.-Israel war on Iran rattled investor confidence and disrupted energy markets. A sharp selloff in technology stocks compounded the damage across key markets.
South Korea's KOSPI was the region's worst performer in March, tumbling roughly 17% over the month and sliding 2.2% on Tuesday alone. The decline was driven by heavy selling in major chipmakers Samsung Electronics and SK Hynix, both of which faced growing uncertainty around long-term artificial intelligence chip demand. Despite the steep March retreat, the KOSPI remained approximately 21% higher for 2026 overall, reflecting the strong gains recorded earlier in the year.
Japan's Nikkei 225 and the broader TOPIX index followed closely behind, with monthly losses exceeding 9% and nearly 10%, respectively. Beyond the Iran conflict, Japanese markets were also weighed down by expectations of further interest rate hikes from the Bank of Japan. India's Nifty 50 shed over 9% in March, reflecting the country's vulnerability to disruptions in oil imports flowing through the Strait of Hormuz.
Chinese markets declined moderately despite encouraging economic data. The CSI 300 and Shanghai Composite each fell less than 1% on Tuesday, and both were headed for monthly losses of 6% to 7%. Positive manufacturing and non-manufacturing PMI figures for March offered little relief to investors focused on broader geopolitical risks. Australia's ASX 200 dropped around 7% in March following an interest rate increase from the Reserve Bank of Australia, while Singapore's Straits Times index was a relative bright spot, losing just 1.6%.
Sentiment across the region remained cautious, though U.S. futures rallied over 1% on reports that President Trump may consider ending the Iran conflict without a push to reopen the Strait of Hormuz — a key shipping lane for Asian energy supplies.


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