Asian stock markets experienced a predominantly downward trend on Friday, reacting to Wall Street's most severe drop since the onset of the Iran war, fueled by escalating uncertainties regarding potential de-escalation efforts.
Market Performance Across Asia
In early trading sessions, Tokyo's Nikkei 225 index declined by 1.2%, settling at 52,982.86 points. South Korea's Kospi index saw a more substantial decrease, falling 3.1% to 5,293.26. Hong Kong's Hang Seng index edged down 0.1% to 24,825.50, while the Shanghai Composite index showed a slight gain of 0.1%, reaching 3,893.21. Australia's S&P/ASX 200 dropped 0.5%, and Taiwan's Taiex traded 1.5% lower, reflecting widespread market unease.
Wall Street's Significant Setback
On Thursday, Wall Street recorded its worst performance since the Iran war commenced, with the S&P 500 index plunging 1.7% to 6,477.16, marking its most significant daily loss since January. The Dow Jones Industrial Average fell 1% to 45,960.11, and the Nasdaq composite slumped 2.4% to 21,408.08. The Nasdaq's decline has now positioned it 10% below its recent all-time high, entering what market analysts term a "correction" phase.
Geopolitical Tensions and Market Disruption
Expectations for de-escalation negotiations between Washington and Tehran earlier this week have plunged financial markets into disarray. Shortly after Wall Street closed on Thursday, U.S. President Donald Trump announced the postponement of a threatened attack on Iran's energy facilities. He further delayed until April 6 a deadline for Iran to reopen the Strait of Hormuz, a critical waterway for global oil and gas transportation. Doubts over a potential end to the conflict intensified after Iran rejected a U.S. ceasefire proposal and issued a counterproposal, coinciding with the U.S. deploying additional troops to the region.
Commodity and Currency Movements
Oil prices continued to decline on Friday after earlier gains, with Brent crude futures, the international benchmark, dropping 1.1% to $100.77 per barrel, down from above $102 on Thursday. Benchmark U.S. crude fell 1.3% early Wednesday to $93.30 a barrel. In contrast, precious metals saw increases, as gold prices rose 1% to $4,420.70 per ounce and silver prices climbed 1.6% to $69.04. Currency markets also shifted, with the U.S. dollar weakening to 159.56 Japanese yen from 159.81 yen, and the euro trading higher at $1.1539, up from $1.1527.
This report includes contributions from AP Business Writer Stan Choe, highlighting the interconnected nature of global financial markets amid ongoing geopolitical strains.
