Asian stocks retreated and oil prices rose on Friday as the fragile ceasefire with Iran was strained by missile and drone attacks that prompted U.S. retaliatory strikes on Iranian military facilities. U.S. futures rose despite the latest flaring in the conflict.
Market Reactions Across Asia
Investors are closely monitoring the war situation as negotiations between the U.S. and Iran to end the conflict make limited progress. Tehran stated Thursday that it was still examining the latest proposals from the U.S. for ending the war.
Tokyo's Nikkei 225 fell 1.1% to 62,174.12 after closing the previous day at a record high of 62,833.84. It briefly crossed the 63,000 mark for the first time during Thursday trading. SoftBank Group, one of Japan's largest stocks, lost more than 5%.
Elsewhere in Asia, South Korea's Kospi fell 1.1% to 7,409.63. Hong Kong's Hang Seng dropped 1.3% to 26,289.50. The Shanghai Composite index shed 0.3% to 4,167.56. Australia's S&P/ASX 200 lost 1.7% to 8,729.40. Taiwan's Taiex was 0.5% lower, while India's Sensex declined 0.6%.
Oil Prices Climb
Oil prices traded higher early Friday after falling the day before. Brent crude, the international standard, climbed 1.1% to $101.13 per barrel. Brent crude was roughly $70 a barrel before the Iran war began in late February. Benchmark U.S. crude rose 0.7% to $95.47 a barrel.
The U.S. Central Command reported Thursday that it intercepted "unprovoked" Iranian attacks on Navy ships in the Strait of Hormuz, although no vessels were struck. However, U.S. President Donald Trump told reporters the ceasefire with Iran was still intact. The United Arab Emirates, a U.S. ally, said early Friday that its air defenses were "actively engaging" with a missile and drone attack.
Oil and fuel prices are expected to remain elevated for as long as the Strait of Hormuz, a key waterway for oil and gas transit, remains largely closed and a U.S. sea blockade on Iranian ports continues.
Wall Street Retreats
On Thursday, U.S. stocks pulled back from records. The benchmark S&P 500 fell 0.4% to 7,337.11. The Dow Jones Industrial Average slipped 0.6% to 49,596.97, while the technology-heavy Nasdaq composite dropped 0.1% to 25,806.20. Shares of Whirlpool sank 11.9% following weaker-than-expected results, and Shack Shack tumbled 28.3% likewise. McDonald's fell 0.1% after recording quarterly revenue that was better than analysts had expected.
The U.S. dollar fell to 156.87 Japanese yen from 156.93 yen. The euro was trading at $1.1729, up from $1.1726.
