Markets across Asia experienced widespread declines Thursday while petroleum prices continued their upward trajectory due to persistent doubts about resolving Middle Eastern conflicts.
American market futures showed a 0.1% decrease ahead of trading.
Japan’s Nikkei 225 index dropped 0.3% to reach 53,607.75, while South Korea’s Kospi experienced a sharper decline of 1.9%, settling at 5,537.30.
In Hong Kong, the Hang Seng index decreased 1.4% to 24,978.71, and mainland China’s Shanghai Composite fell 0.6% to 3,909.16.
Australia’s S&P/ASX 200 slipped 0.2%, though Taiwan’s Taiex managed a 0.4% gain against the regional trend.
Petroleum markets saw renewed increases Thursday following earlier declines. Brent crude, the global benchmark, advanced 1.3% to $98.51 per barrel after trading below $95 on Wednesday. U.S. benchmark crude climbed 1.6% to $91.75 per barrel.
Energy price increases followed Tehran’s Wednesday rejection of a U.S. ceasefire proposal. The Trump administration had presented a 15-point plan to Iran, with the president postponing his self-imposed deadline to “obliterate” Iranian power facilities as leverage to reopen the Strait of Hormuz.
Iranian forces continued attacks against Israel and Gulf Arab nations while Israel conducted airstrikes on Tehran and the U.S. prepared additional troop deployments to the region.
The Strait of Hormuz, a vital shipping channel between Iran and Oman through which approximately 20% of global oil normally flows, has remained mostly blocked since hostilities commenced. Oil prices have swung dramatically, rising roughly 40% since the conflict entered its fourth week.
Wednesday’s U.S. trading session ended positively. The S&P 500 increased 0.5% to 6,591.90, the Dow Jones Industrial Average advanced 0.7% to 46,429.49, and the Nasdaq composite gained 0.8% to 21,929.83.
Arm Holdings shares surged 16.4% in U.S. trading after the British company announced plans to develop and market its own semiconductor products, a move expected to boost future earnings.
Swiss athletic wear company On Holding saw its U.S.-traded shares plummet 11.2% following CEO Martin Hoffmann’s resignation announcement and the appointment of two company co-founders as replacement co-CEOs.
Precious metals declined in early Thursday trading. Gold fell 0.8% to $4,513.90 per ounce while silver dropped 0.9% to $71.97 per ounce.
Currency markets showed the U.S. dollar weakening to 159.42 Japanese yen from 159.47 yen. The euro strengthened to $1.1570 from $1.1559.
