Asian stocks experienced a downturn on Friday, despite Wall Street reaching another record high. Investors remained focused on developments regarding U.S.-Iran talks and a potential extension of the ceasefire in the ongoing Iran war, which is set to expire next week.
Oil prices saw a decrease on Friday following a rise the day before, while U.S. futures showed modest gains. The Tokyo Stock Exchange’s Nikkei 225 index fell by 1% to close at 58,930.87, after hitting an all-time high the previous day. The South Korean Kospi index dropped 0.6% to 6,191.19, and Hong Kong's Hang Seng closed down by 1% at 26,126.86. Meanwhile, the Shanghai Composite index experienced a slight dip of 0.1% to 4,051.45. In Australia, the S&P/ASX 200 lost 0.3%, while Taiwan’s Taiex index traded down by 0.5%.
U.S. President Donald Trump indicated on Thursday that he is open to extending the two-week ceasefire in the Iran war, which has been a significant factor influencing market sentiment. Iran’s U.N. envoy expressed that Tehran remained "cautiously optimistic" regarding ongoing negotiations with the U.S. These developments led to increased optimism regarding the ceasefire extension, contributing to the falling oil prices. Brent crude, the international benchmark, decreased by 1.1% to $98.31 per barrel, while U.S. crude dropped by 1.4% to $89.90 per barrel. Notably, Brent crude has risen approximately 40% since the war began in late February.
The conflict in the Iran war has led to global energy concerns. The Strait of Hormuz, a critical shipping route, has been largely closed, and the U.S. has imposed a sea blockade on Iranian ports. The head of the International Energy Agency recently warned that Europe has only “maybe six weeks or so” of jet fuel supplies remaining, raising alarms about potential flight cancellations in the near future.
On Wall Street, the previous day marked another milestone as the benchmark S&P 500 closed 0.3% higher at 7,041.28, surpassing its previous all-time high set in January. The Dow Jones Industrial Average increased by 0.2% to 48,578.72, while the tech-heavy Nasdaq composite rose by 0.4% to 24,102.70. Positive corporate earnings reports contributed to this upward trend, with PepsiCo shares rising by 2.3% following a better-than-expected quarterly performance. J.B. Hunt Transport Services saw an even larger increase of 6.3% due to stronger-than-anticipated results.
In other financial markets, precious metals experienced gains. Gold saw a slight increase of 0.1%, reaching $4,814.60 an ounce, while silver prices rose by 0.4% to $79.04 per ounce. The U.S. dollar strengthened against the Japanese yen, increasing to 159.43 from 159.17, whereas the euro saw a minor decrease, trading at $1.1778, down from $1.1781.
The fluctuating stock markets and commodities highlight the ongoing uncertainty surrounding geopolitical tensions, particularly the U.S.-Iran conflict, and the subsequent impact on global markets and energy supplies.
