Asian Markets Decline Amid Geopolitical Tensions And Tech Valuation Concerns

On February 27, 2026, Asian markets experienced a downturn, primarily influenced by concerns over technology valuations and geopolitical tensions, particularly related to the U.S.-Iran nuclear negotiations. The MSCI Asia-Pacific index fell by 0.4%, with Japan's Nikkei dropping 0.8% to 58,292.64. Despite Nvidia's strong earnings report, which showed a 73% increase in quarterly revenue, the market reaction was tepid, leading to a flat performance in U.S. futures. Mantas Vanagas, a senior economist at Westpac Group, noted, "AI and geopolitics remained front and centre for financial markets, prompting a retreat from risk assets and a shift towards safe havens." Meanwhile, the yen strengthened slightly against the dollar, reflecting cautious sentiment amidst ongoing discussions about potential military actions against Iran, as highlighted by Omani Foreign Minister Sayyid Badr Albusaidi's comments on the negotiations' progress.