BY COMFORT OGBONNA
Asian stock markets mostly declined on Friday while oil prices climbed, following Wall Street’s steepest drop since the outbreak of the conflict in Iran, reflecting growing uncertainty over the prospects for de-escalation in the region. Investors are weighing the economic consequences of an intensifying geopolitical crisis that has already disrupted global trade and sent energy costs soaring.
In Japan, the Nikkei 225 fell 0.4% to close at 53,373.07, marking a continuation of the caution that gripped traders after Wall Street’s turbulent session. South Korea’s Kospi mirrored this trend, slipping 0.4% to 5,438.87, recovering slightly from earlier sharper losses during the trading day.
Meanwhile, Hong Kong’s Hang Seng rebounded modestly by 0.4% to 24,952.98 after early losses, while China’s Shanghai Composite climbed 0.6% to 3,913.72, reflecting a mixed sentiment among investors as they absorbed global developments. Australia’s S&P/ASX 200 edged down 0.1% to 8,516.30, and Taiwan’s Taiex declined 0.7%. India’s Sensex suffered a sharper drop of 1.7%, highlighting broader concerns about regional and global economic stability.
The sharp declines in Asian markets follow a severe sell-off on Wall Street on Thursday, where the S&P 500 fell 1.7% to 6,477.16, its worst performance since the beginning of the Iran war. The Dow Jones Industrial Average lost 1% to 45,960.11, and the Nasdaq Composite plunged 2.4% to 21,408.08, now approximately 10% below its recent all-time high, putting it officially in “correction” territory. The sell-off has been fueled by uncertainty over whether the U.S. and Iran can reach any meaningful agreement to ease tensions.
Expectations of possible negotiations between Washington and Tehran had initially offered some optimism, but those hopes have been tempered by recent developments. Shortly after U.S. trading ended Thursday, President Donald Trump announced the postponement of a planned strike on Iran’s energy facilities, extending the deadline for Iran to reopen the Strait of Hormuz until April 6. The Strait, a crucial passage for global oil and gas shipments, has been partially closed since the onset of the conflict, though Iran asserts that the closure affects only its adversaries. Reports suggest the nation is now imposing fees for vessels passing through, with some payments reportedly made in China’s yuan.
Oil markets reacted quickly to the unfolding situation. Brent crude futures, the international benchmark, rose 1% to $102.92 per barrel in early Friday trading, while U.S. crude futures gained 0.8% to $95.25 per barrel. Rising oil prices underscore concerns about prolonged disruptions to global energy supplies, which could intensify inflationary pressures worldwide and slow economic growth.
Complicating the picture, Iran rejected a U.S. ceasefire proposal and presented its own counterproposal, even as the U.S. dispatched additional troops to the region. The ongoing conflict, now entering its fourth week, continues to affect not only oil markets but also trade flows and investor confidence globally.
Investors also sought refuge in precious metals. Gold prices climbed 1.6% to $4,446.90 per ounce, while silver rose 2.7% to $69.74, reflecting a flight to safe-haven assets amid escalating uncertainty. Currency markets showed modest movements, with the U.S. dollar strengthening slightly against the Japanese yen to 159.95 from 159.81, while the euro traded at $1.1525, slightly down from $1.1527.
As global markets adjust to these developments, economists and analysts warn that the persistence of the Iran conflict could have far-reaching implications for energy costs, trade dynamics, and economic growth, heightening volatility across financial markets in the weeks ahead.
Original article
Comments