Asian markets traded lower on Thursday, following overnight losses on Wall Street, as investors remained cautious amid escalation of the US-Iran war, and rising inflation concerns due to elevated crude oil prices.
Japan’s Nikkei 225 declined 0.44% to 63,896.82, weighed by a selloff in chip-related stocks. The benchmark fell as much as nearly 3% earlier in the session, slipping below the 63,000 level for the first time since May 22. The Topix dropped 0.85% to 3,814.97.
Japanese government bond (JGB) yields also climbed on inflation concerns. The benchmark 10-year JGB yield rose 1 bp to 2.690%. The 30-year yield added 2 bps to 3.870%.
South Korea’s Kospi fell 0.62% to 7,682.53, recovering from an over 4% slump during the session, while the Kosdaq was flat.
Hong Kong’s Hang Seng rose 0.2% to 24,468.82, but the Shanghai Composite index fell 0.2% to 3,983.80. Taiwan’s Taiex slipped 0.4%.
US-Iran War
The in the Middle East escalated after the latest US’ strikes on multiple locations in Iran, with President Donald Trump vowing to “hit them hard” as the peace talks to end the war faltered, endangering the fragile truce that had calmed the tense West Asia.
The US has called it a self-defense strike, while Iran has reported explosions near the Strait of Hormuz, Qeshm, Kargan and Sirik.
The latest attacks in the Middle East lifted crude oil prices, raising inflation concerns. Iran also declared the critical energy chokepoint, the , closed.
Brent futures gained 1.57% to $94.56 a barrel, while US West Texas Intermediate (WTI) crude rallied 1.89% to $91.73 a barrel. US crude futures gained more than $3 earlier in the session.
Overnight in the US, Wall Street indices ended sharply lower, weighed down by extended selling in chipmaker shares.
The Dow Jones Industrial Average plunged 953.33 points, or 1.87%, to 49,918.78, while the S&P 500 dropped 119.66 points, or 1.62%, to 7,266.99. The Nasdaq Composite closed 509.32 points, or 1.98%, lower at 25,169.50.