Asian equity markets suffered a brutal sell-off on March 4 as an intensifying conflict in the Middle East sparked fears of a global energy shock.
The carnage was centred in Seoul, where the KOSPI plummeted 9.70%, triggering emergency circuit breakers.
With two-day losses reaching a staggering 17%—the heaviest since the 2009 financial crisis—the South Korean won also buckled, sliding to a 17-year low.
The volatility rippled across the region as investors abandoned high-flying semiconductor positions.
Japan’s Nikkei 225 fell 4.20%, while Taiwan’s TAIEX dropped 3.6%, reflecting the vulnerability of energy-dependent manufacturing hubs.
The regional MSCI AxJ index tracked the broader gloom with a 4.2% decline.
The flight to safety comes as US and Israeli forces continue a four-day campaign against Iranian targets, following strikes on Gulf refineries and US embassies.
Brent crude surged 13% this week to $82.08 a barrel, despite US President Donald Trump's pledge of naval escorts in the Strait of Hormuz.
Analysts warn that prolonged hostilities could derail hopes for interest rate cuts.
"Oil infrastructure is under attack," noted Damien Boey of Wilson Asset Management, highlighting the shift in market sentiment.
The currency markets mirrored this anxiety; the Euro remained pinned at $1.16 as European gas prices jumped 65% in 48 hours, while the Australian dollar retreated below 70 cents amidst the global hunker-down.