Affected by the escalation of tensions in the Middle East, Asian stock markets declined sharply on Tuesday. The Japanese Nikkei Index plummeted over 3%, dropping 1778 points to close at 56200 points. The Hong Kong Hang Seng Index fell 1.12%, erasing all gains since the beginning of the year. The Indian stock market was closed for a holiday and was not affected by the sell-off. Analysts warn that geopolitical turmoil could hinder economic growth and prolong the recovery time for investors.