Asia-Pacific stock markets plunge collectively! What happened?

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Today, Asia-Pacific stock markets experienced significant declines. By the close, the Nikkei 225 index fell 3.48%, and the Korea Composite Index dropped 6.49%.

Affected by multiple factors, the overall performance of the A-share market was weak today. By the close, the Shanghai Composite Index declined 3.63%, the Shenzhen Component Index fell 3.76%, the ChiNext Index dropped 3.49%, and the STAR Market Composite Index decreased 4.93%. The Hang Seng Index declined 3.54%, and the Hang Seng Tech Index fell 3.28%.

Market analysis suggests that today’s A-share performance was mainly impacted by geopolitical tensions in the Middle East, soaring international oil prices, a reversal in Federal Reserve policy expectations, pressure from Asia-Pacific markets, and negative news in certain sectors. Notably, international gold prices weakened sharply, dragging down the gold sector; coal and oil & gas sectors remained active against the trend, but overall sector performance was highly differentiated.

Most domestic commodity futures closed higher, with many energy and chemical products hitting daily limit-ups. Acrylonitrile surged over 12%, while BR rubber, liquefied gas, coking coal, plastics, and polypropylene all hit daily limits. Methanol rose over 8%, crude oil increased over 7%, coke gained nearly 7%, PVC and short fiber rose over 6%, and asphalt, caustic soda, and soda ash increased over 4%.

As of 15:16 Beijing time, COMEX gold futures fell 8.18%, COMEX silver futures dropped 10.24%, London gold spot prices declined 8.14%, and London silver spot prices fell 10.15%.

Notably, near the end of trading, trading volumes of several broad-based ETFs increased. By the close, ETFs such as the CSI 300 ETF (Huatai-PineBridge) and the CSI 500 ETF (Southern Fund) had trading volumes exceeding 5.1 billion yuan.

Coal and oil & gas stocks defy the trend and remain active

Today, coal and oil & gas stocks performed counter to the market trend. Data from Tonghuashun shows that by the close, only the coal mining and processing sector rose over 1%, and the oil & gas exploration and services sector increased nearly 1%, while other sectors declined. Yunmei Energy and Liaoning Energy hit the daily limit.

Many institutions believe that the coal sector has both cyclical and dividend attributes, with current holdings at low levels and fundamentals reaching a turning point.

Open Source Securities reports that current prices for thermal coal and coking coal remain at historic lows, providing room for a rebound. The support comes from the long-term contract mechanism for thermal coal and the logic of profit sharing between coal and thermal power companies; meanwhile, coking coal, with higher marketization, is more sensitive to supply and demand changes and may show greater price elasticity.

Shanxi Securities notes that the coal market is affected by overseas geopolitical conflicts and rising costs of imported coal, leading to continued increases in international coastal coal freight rates. Recently, domestic coal prices have begun to rise due to overseas developments, and future trends will depend on import policies and domestic supply increases.

Precious metals sector plunges over 8%

Today, the precious metals sector fell more than 8%, with Chifeng Gold and Sichuan Gold hitting the daily limit down.

The Shanghai Gold Exchange issued a notice on March 23, stating that recent market instability has led to significant volatility in precious metal prices. Members are advised to closely monitor market changes, prepare detailed risk contingency plans, and maintain market stability. Investors are also reminded to manage risks, control positions reasonably, and invest rationally.

Market analysis indicates multiple reasons for the sharp decline in gold. These include pressure from real interest rates, the US dollar absorbing some funds and limiting or reversing gold gains, oil price shocks, and profit-taking after previous large gains.

Zhongyou Securities reports that the long-term logic for precious metals is strengthening. Recently, due to ongoing Middle East conflicts and high oil prices, markets have started pricing in a Federal Reserve rate hike in 2026, leading to adjustments in global risk assets and a sell-off in precious metals. However, the value of gold as an allocation asset is expected to re-emerge once liquidity fears subside. In the long term, conflicts may push oil prices higher and inflation expectations upward, making gold a more attractive addition.

Tourism and hotel sector decline sharply

In the afternoon, the decline in the tourism sector widened. By the close, the tourism and hotel sectors fell over 6%.

Analysts believe that under the weak overall market environment, the tourism sector, being cyclical, is more susceptible to style shifts, with capital flowing into defensive sectors, exacerbating the sector’s correction. From a medium- to long-term perspective, seasonal factors combined with policy catalysts may gradually restore valuations, but attention should be paid to signs of fundamental improvement and policy redemptions.

(Note: Market charts in the article are sourced from Tonghuashun and Wind.)