Asian stocks plunged Wednesday as South Korea's KOSPI tumbled 11%, the sharpest decline in the region. Heightened U.S.-Iran conflict fears triggered a broad shift out of risky assets, with tech giants Samsung Electronics and SK Hynix leading losses. Samsung's Texas chip facility delay to 2027 compounded investor concerns, extending deep losses from the prior session.

Chinese stocks retreated after mixed PMI data showed manufacturing contraction in official figures versus growth in private surveys. Australia's market fell 2.1% despite Q4 GDP rising 2.7% to a three-year high, as strong consumer spending fueled inflation worries. Reserve Bank Governor Michele Bullock signaled potential March rate hikes, adding to market anxiety.

Broader Asian markets followed Wall Street's lead, with Japan's indexes dropping over 4%. Rising oil prices from Middle East tensions weighed on net crude exporters. Singapore's index slid 2.3%, while Indian futures fell 0.6%. Analysts warned about "stagflationary implications" from prolonged energy disruption, leaving regional markets vulnerable to ongoing geopolitical risks.