Asian stock markets experienced declines on Friday, with oil prices also falling, even as Wall Street achieved another record high. Investors are closely watching developments in U.S.-Iran negotiations and the potential extension of a ceasefire in the Iran war, which is set to expire next week.
Market Movements Across Asia
In Tokyo, the Nikkei 225 index fell by 1% to 58,930.87, following an all-time high reached on Thursday. South Korea's Kospi decreased by 0.6% to 6,191.19, while Hong Kong's Hang Seng dropped 1% to 26,126.86. The Shanghai Composite index edged down slightly by 0.1% to 4,051.45.
Additionally, Australia's S&P/ASX 200 lost 0.3%, and Taiwan's Taiex traded 0.5% lower. U.S. futures showed modest gains early on Friday.
Ceasefire Optimism and Oil Price Impact
U.S. President Donald Trump indicated on Thursday that he is open to extending the two-week ceasefire in the Iran war. Iran's U.N. envoy expressed cautious optimism regarding ongoing negotiations with the United States. As hopes for an extended ceasefire grew, oil prices declined early Friday after a previous day's increase.
Brent crude, the international benchmark, fell by 1.1% to $98.31 per barrel. It had surged approximately 40% since the Iran war began in late February. Benchmark U.S. crude was down 1.4% to $89.90 a barrel.
Global Energy Concerns
The ongoing Iran war has heightened global energy shocks, with the Strait of Hormuz largely closed and the U.S. imposing a sea blockade on Iranian ports. The head of the International Energy Agency warned on Thursday that Europe might have only about six weeks of jet fuel supplies remaining, predicting potential flight cancellations soon.
Wall Street's Record Performance
On Thursday, Wall Street set another record as the benchmark S&P 500 closed 0.3% higher at 7,041.28, surpassing its previous all-time high from January. The Dow Jones Industrial Average rose 0.2% to 48,578.72, and the tech-focused Nasdaq composite added 0.4% to 24,102.70.
Notable stock gains included PepsiCo, which increased by 2.3% after announcing better-than-expected quarterly results. U.S. logistics company J.B. Hunt Transport Services rose 6.3% also due to stronger-than-expected results.
Other Market Developments
In other financial dealings, gold and silver prices saw increases. Gold's price was up 0.1% at $4,814.60 an ounce, while silver prices gained 0.4% to $79.04 per ounce. The U.S. dollar strengthened to 159.43 Japanese yen from 159.17 yen, and the euro traded at $1.1778, down from $1.1781.
This report includes contributions from AP Business Writer Stan Choe, highlighting the interconnected nature of global markets amid geopolitical tensions.
