Asian Stock Markets Open Lower Following New Escalation in the Middle East
Asian-Pacific markets opened lower on Friday, due to renewed concerns over the heated dispute between Iran and the US amid a fragile ceasefire.
The US and Iran exchanged fire in the Strait of Hormuz, with each side claiming the other initiated the attack.
Despite the escalation, US President Donald Trump insisted that the ceasefire remains in place, stating that the attacks were “just a light touch” during a phone call with a reporter on Thursday evening.
Trump later claimed in a subsequent Truth Social post that the US had “completely destroyed” the Iranian side involved in the firefight, which he said included small boats and drones that “fell very beautifully into the sea, like butterflies falling into their grave!”
He reiterated that Iran would face further attacks if they do not agree to a nuclear deal.
“Just like we beat them again today, we will beat them much harder, and much more brutally, in the future, if they do not sign their deal, IMMEDIATELY!” Trump wrote.
Oil futures prices surged. June West Texas Intermediate (WTI) crude oil futures rose 2.23% to $96.92 per barrel. July Brent crude oil futures climbed 2.40% to $102.46 per barrel.
South Korea’s Kospi index fell 1.88%, while the Kosdaq index for small companies rose 0.56%. Japan’s Nikkei 225 index dropped 0.62% amid profit-taking after reaching a record high on Thursday.
Australia’s S&P/ASX 200 index declined 0.88%.
Hong Kong’s Hang Seng futures were at 26,285, lower than the index’s previous close of 26,626.28.
S&P 500 and Nasdaq 100 futures fell less than 0.1%. Contracts tied to the Dow Jones Industrial Average dropped 12 points, or less than 0.1%.
During Thursday’s regular session, the S&P 500 stock market fell 0.38% and closed at 7,337.11, pressured by losses in Amazon and semiconductor stocks such as Broadcom and Micron Technology. The Nasdaq Composite dropped 0.13% and ended at 25,806.20. This technology-dominated index also hit a new all-time high during the session. The Dow Jones Industrial Average fell 313.62 points, or 0.63%, and closed at 49,596.97.