HONG KONG (AP) - Asian stock markets faced a downturn on Friday, even following record-setting performances on Wall Street. Investors remained cautious, closely monitoring ongoing discussions regarding U.S.-Iran relations and the impending expiration of the ceasefire in the Iran war, which is set to conclude next week.
Oil prices experienced a decline, while U.S. futures showed slight increases. In Tokyo, the Nikkei 225 fell by 1.8% to 58,475.90, having reached an all-time high just the day before. South Korea's Kospi also dropped by 0.6%, closing at 6,191.92. Meanwhile, Hong Kong's Hang Seng index slid by 1% to 26,143.60. Notably, Manycore Tech, a Chinese spatial design software company and part of the so-called "six little dragons" technology firms from Hangzhou, surged over 140% on its debut trading day in Hong Kong, driven by the ongoing artificial intelligence boom. The Shanghai Composite index saw a minor dip of 0.1%, finishing at 4,051.43.
Australia's S&P/ASX 200 saw a slight loss of 0.1%, and Taiwan's Taiex fell by 0.9%. In contrast, India's Sensex managed a gain of 0.4%. U.S. President Donald Trump indicated on Thursday that he was open to extending the two-week ceasefire in the Iran war, while Iran's United Nations envoy expressed cautious optimism over ongoing negotiations with the United States.
As speculation regarding a potential extended ceasefire gained traction, oil prices fell on Friday after having increased the previous day. Brent crude oil, the international benchmark, decreased by 1.1% to $98.26 per barrel, following a remarkable rise of approximately 40% since the onset of the Iran war in late February. Benchmark U.S. crude similarly dipped by 1.6% to $89.70 a barrel.
The Iran war has significantly affected global energy markets, with mounting concerns surrounding the impacts of the conflict. The Strait of Hormuz remains largely closed, as the U.S. has enforced a sea blockade on Iranian ports. The head of the International Energy Agency cautioned on Thursday that Europe may have "maybe six weeks or so" of jet fuel supplies remaining and warned of potential flight cancellations in the near future.
On the previous day, Wall Street marked another record, with the benchmark S&P 500 closing 0.3% higher at 7,041.28, just a day after surpassing its former all-time high achieved in January. The Dow Jones Industrial Average rose 0.2%, reaching 48,578.72, while the tech-focused Nasdaq composite added 0.4%, closing at 24,102.70.
In the U.S., shares of PepsiCo rose by 2.3% following the announcement of better-than-expected quarterly results. Additionally, logistics company J.B. Hunt Transport Services saw a notable increase of 6.3%, also buoyed by stronger-than-anticipated performance metrics.
In terms of commodities, gold recorded a slight decrease of 0.1%, settling at $4,806.10 an ounce, whereas silver prices increased by 0.3%, reaching $78.94 per ounce. The U.S. dollar rose against the Japanese yen, trading at 159.25, compared to 159.17 yen previously. The euro stood at $1.1782, an increase from $1.1781.
As the situation continues to unfold, market participants are expected to remain vigilant, assessing geopolitical developments and their potential impacts on global markets.
