Asian Stock Markets Decline Amid Rising Oil Prices
HONG KONG – Most Asian stocks were lower on Friday, reflecting a decline on Wall Street and an increase in oil prices. This comes during what has been labeled the worst day since the war began, with uncertainty growing over peace negotiations.
In Japan, the Nikkei Stock Average dropped 0.4% to 53,373.07 yen. Similarly, South Korea’s Kospi index fell by 0.4% to 5,438.87 by the end of trading.
Conversely, Hong Kong’s Hang Seng Index managed a slight increase of 0.4% to 24,952.98 after a significant drop earlier. The Shanghai Composite Index also saw a rise of 0.6%, trading at 3,913.72.
Australia’s S&P/ASX 200 index decreased by 0.1%, closing at 8,516.30.
In Taiwan, the ThaiEx fell by 0.7%, while India’s Sensex experienced a 1.7% drop.
Thursday marked a tough day for Wall Street, which saw its most significant drop as the conflict intensified. The S&P 500 fell 1.7% to 6,477.16, marking its worst performance since January. The Dow Jones Industrial Average saw a 1% decline, closing at $45,960.11, while the Nasdaq Composite dropped 2.4% to 21,408.08, now down 10% from its recent peak, indicating a “correction.”
The anticipation of decreased tensions this week has fluctuated, as the clashes between Washington and Tehran have caused quite a stir in the markets.
After the markets closed, U.S. President Donald Trump announced he would postpone threats to strike Iranian energy facilities and extended the deadline for reopening these facilities to April 6. The Strait of Hormuz, crucial for oil and gas transport, remains a focal point of tension.
On Friday, U.S. futures were up by 0.3%.
Oil prices climbed in early trading, with Brent crude oil futures rising 1% to $102.92 per barrel, while benchmark U.S. crude oil increased 0.8% to $95.25 per barrel.
Iran’s rejection of a U.S. ceasefire proposal has led to skepticism about the possibility of ending the war. Meanwhile, the U.S. continues to send additional troops to the area. With the conflict now entering its fourth week, global inflation is expected to rise, impacting economic growth along with heightened energy costs and trade disruptions.
Since the conflict commenced, the Strait of Hormuz has been primarily closed, although Iran asserts that it’s only inaccessible to hostile nations. Recent reports suggest that vessels are paying tolls in the Chinese renminbi.
In other markets on Friday, gold and silver prices also saw increases. Gold prices rose by 1.6% to $4,446.90 per ounce, while silver prices surged 2.7% to $69.74.
The dollar saw a slight rise against the yen, moving from 159.81 to 159.95. The euro was trading at $1.1525, a slight dip from $1.1527.
