HONG KONG (AP) — Markets across Asia declined Friday despite Wall Street achieving another record-breaking session, as traders monitored developments in potential ceasefire extension discussions between the United States and Iran regarding the ongoing conflict set to expire next week.
Petroleum prices dropped Friday while U.S. market futures showed modest gains.
Japan’s Nikkei 225 declined 1% to close at 58,930.87, falling from Thursday’s record peak. South Korea’s Kospi dropped 0.6% to 6,191.19. The Hang Seng in Hong Kong slipped 1% to 26,126.86, and Shanghai’s Composite index dipped 0.1% to 4,051.45.
The S&P/ASX 200 in Australia decreased 0.3%, and Taiwan’s Taiex fell 0.5%.
President Donald Trump indicated Thursday his willingness to consider prolonging the two-week Iran war ceasefire, while Iran’s United Nations representative expressed that Tehran remains “cautiously optimistic” about ongoing U.S. negotiations.
With growing confidence about a potential ceasefire extension, petroleum prices declined early Friday after Thursday’s increases. Brent crude, the global benchmark, fell 1.1% to $98.31 per barrel. The commodity had jumped approximately 40% since the Iran conflict began in late February. U.S. benchmark crude dropped 1.4% to $89.90 per barrel.
Worldwide energy concerns are escalating due to the Iran war’s effects, with the Strait of Hormuz staying mostly blocked as the United States maintains a naval blockade on Iranian ports. The International Energy Agency’s director informed The Associated Press Thursday that Europe has “maybe six weeks or so” of aviation fuel reserves left and cautioned about upcoming flight cancellations “soon.”
Thursday saw Wall Street achieve another milestone as the S&P 500 benchmark rose 0.3% to close at 7,041.28, one day after surpassing its previous January record. The Dow Jones Industrial Average increased 0.2% to 48,578.72, while the technology-heavy Nasdaq composite climbed 0.4% to 24,102.70.
PepsiCo stock jumped 2.3% following the company’s announcement of quarterly earnings that exceeded expectations. Transportation firm J.B. Hunt Transport Services surged 6.3% also due to results that beat forecasts.
In commodity trading, precious metals posted gains. Gold increased 0.1% to $4,814.60 per ounce, and silver advanced 0.4% to $79.04 per ounce.
Currency markets saw the U.S. dollar strengthen to 159.43 Japanese yen from 159.17 yen. The euro declined to $1.1778 from $1.1781.
