Asian Markets Slide as Tech Weakness Spreads and Oil Prices Drop on Iran Signals

BY EMMANUEL OGBONNA

Asian stock markets were mostly lower on Thursday, with investors remaining cautious after a retreat on Wall Street driven by declines in major technology shares, while oil prices slid sharply amid geopolitical developments linked to Iran.

Market sentiment was unsettled after U.S. President Donald Trump said he had been informed “on good authority” that plans for executions in Iran had been halted. His comments came even as Iranian officials continued to signal fast-track trials and potential executions as part of a sweeping crackdown on protesters. The remarks helped ease some immediate fears of escalation, pushing oil prices sharply lower.

U.S. benchmark crude fell by $2, or 3.4%, to $59.75 a barrel, while Brent crude, the international benchmark, dropped $2.31, or 3.5%, to $64.21 a barrel.

In Asia, Japan’s Nikkei 225 index slipped 0.4% to 54,110.50, dragged down by losses in technology-related stocks. SoftBank Group fell 4.9%, while chip-testing equipment maker Advantest declined 2.5%, reflecting broader caution toward the tech sector after recent volatility in U.S. markets.

Not all Japanese shares moved lower. Retailer Ryohin Keikaku, the operator of the Muji brand, surged nearly 12% after reporting earnings that exceeded market expectations, offering a bright spot in an otherwise subdued session.

Shares of Toyota Industries jumped 6.2% following reports that Toyota Motor had increased its proposed buyout offer to 18,800 yen, or about $118.61, per share, fueling optimism about the deal’s prospects.

In Hong Kong, the Hang Seng Index fell 0.3% to 26,925.00. Shares of Trip.com, the Chinese online travel platform, plunged 18% after authorities in Beijing announced the launch of an antitrust investigation into the company. On the mainland, the Shanghai Composite Index slipped 0.3% to 4,112.60 after regulators raised minimum margin requirements for investors, a move seen as an effort to curb speculative trading.

South Korea’s Kospi bucked the regional trend, rising 1.6% to 4,797.55, supported by gains in heavyweight shares. In Australia, the S&P/ASX 200 added 0.5% to 8,861.70.

Taiwan’s Taiex fell 0.4%, weighed down by losses in semiconductor stocks. Shares of Taiwan Semiconductor Manufacturing Co. declined 1.2%, despite the company reporting better-than-expected quarterly profit and revenue and announcing plans to significantly increase capital spending this year.

U.S. stock futures were mixed in early trading, with contracts for the S&P 500 edging up less than 0.1%, while futures for the Dow Jones Industrial Average dipped by a similar margin.

On Wall Street, stocks finished lower on Wednesday. The S&P 500 fell 0.5% for a second consecutive session, the Dow Jones Industrial Average slipped 0.1%, and the Nasdaq composite dropped 1%, reflecting renewed pressure on large technology companies.

Big Tech shares were among the main drags on the market, even as a majority of U.S. stocks posted gains. Investors appeared to be pulling back from the artificial intelligence rally that has powered markets for months, amid warnings from some analysts that valuations had become stretched. Nvidia fell 1.4%, while Broadcom tumbled 4.2%.

Financial stocks also weighed on sentiment. Wells Fargo sank 4.6% after reporting quarterly profit and revenue that fell short of expectations. Bank of America declined 3.8%, and Citigroup dropped 3.3%.

Energy stocks helped limit broader market losses as oil companies benefited from earlier strength in crude prices. Exxon Mobil rose 2.9%, while Chevron gained 2.1%.

With geopolitical uncertainty still elevated, investors continued to seek perceived safe-haven assets. Gold prices slipped 0.8% on Thursday but remained close to recent record highs.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note fell to 4.14% from 4.18% late Tuesday, reflecting increased demand for government debt. Bond prices move inversely to yields.

In currency trading, the U.S. dollar strengthened to 158.63 Japanese yen from 158.46 yen. The euro edged lower to $1.1636 from $1.1645, as foreign exchange markets reacted to shifting risk sentiment and movements in global bond yields.