During concerns of inflation caused by the war, Asian stocks erased gains from 2026.

Sina Finance reported on March 31st that Asian stock markets fell, with major benchmark indexes in the region wiping out gains for the year due to concerns over inflation and slowing economic growth caused by the surge in energy costs due to the Iran war. On Tuesday, the MSCI Asia Pacific index fell by 1.3%, with Samsung Electronics and SK Hynix dragging down the index the most. The MSCI Emerging Markets Index also erased gains for the year. This milestone highlights the sharp turnaround in the fate of Asian markets. At the beginning of the year, Asian markets had been soaring as investors poured into artificial intelligence infrastructure stocks in the region. However, as the Middle East conflict entered its fifth week, risk bets are decreasing. The MSCI Asia Pacific index hit a record high on February 27th, with a 15% gain since the beginning of the year, far outperforming global stock markets. With expectations of tighter monetary policy and limited key raw material supplies, investors are beginning to reassess growth theories, and the previously accumulated gains have evaporated.