Asian markets settled mostly lower on Monday tracking Wall Street’s fall last Friday as escalating geopolitical tensions in West Asia triggered widespread investor panic and a massive sell-off. The United States and Israel carried out military strikes on Iran over the weekend that resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, and the effective closure of the Strait of Hormuz. US President Donald Trump warned that the joint US-Israeli military operations against Iran could last for another four weeks, as Iranian forces unleashed multiple waves of counterattacks targeting American and Israeli assets across the Middle East. Japanese shares declined due to uncertainty over the Bank of Japan's policy outlook, increasing anxieties over artificial intelligence and rising concerns about the lack of transparency in private lending. Hong Kong shares fell ahead of China’s February PMI and Hong Kong’s January retail sales data. 

However, Chinese shares bucked the trend and gained ahead of annual parliamentary meeting, where policymakers are expected to set economic targets and outline policy priorities. China’s annual ‘Two Sessions’ will convene from March 4 to around March 11, during which the government is also expected to release its 15th Five-Year Plan detailing objectives for 2026-2030. Meanwhile, South Korean market was closed for Independence Movement Day Alternative Holiday.