Xinhua News Agency: Middle East conflict impacts Asia-Pacific economy, South Korea's stock index plunges over 12% in a single day, multiple countries activate emergency plans

Gate News Report, March 7 — Xinhua News Agency reports that the ongoing military conflicts between the United States, Israel, and Iran continue to impact the Asia-Pacific region, triggering economic uncertainty and energy security alerts. Multiple governments and regional organizations are calling for an immediate halt to military actions.

Julia Roknifard, senior lecturer at Taylor’s University in Malaysia, stated that Southeast Asia may face trade disruptions and rising energy costs. A survey by the Malaysian External Trade Development Corporation shows that nearly 64% of Malaysian companies expect to be affected by the conflict, mainly due to transportation delays, increased shipping and insurance costs, and rising raw material prices linked to crude oil. Retail fuel prices in Cambodia have increased over the past week, with key sectors such as apparel and agriculture facing higher production and logistics costs. Sri Lankan President Anura Kumara Dissanayake warned that the conflict could impact the country’s economy. South Korea’s KOSPI and KOSDAQ indices fell 12.06% and 14% respectively on Wednesday, then rebounded on Thursday.

Kristalina Georgieva, Managing Director of the International Monetary Fund, stated in Bangkok on Thursday that if the conflict persists, it could affect global energy prices, market sentiment, economic growth, and inflation.

Countries are actively responding to the shocks. Cambodian Prime Minister Hun Manet emphasized that ASEAN should strengthen regional resilience through energy diversification and deepening economic integration. Vietnam has established a dedicated task force to monitor energy markets. The Philippines announced it has 50 to 60 days of oil buffer reserves. South Korea issued a “watch” alert for crude oil and natural gas. Australia and New Zealand are assisting in evacuating their citizens from the Middle East.

Diplomatically, ASEAN foreign ministers issued a joint statement on March 4 calling for an immediate ceasefire. Chinese Foreign Minister Wang Yi held talks with foreign ministers from Russia, Iran, Israel, and Saudi Arabia, emphasizing adherence to the UN Charter and opposition to the arbitrary use of force. China will also send Special Envoy Zhai Jun to the Middle East to help de-escalate the situation.