Asian Stocks Dip as Oil Rises Amid Iran War Uncertainties
On Thursday, Asian stocks experienced a predominantly downward trend, while oil prices saw an increase, amid ongoing uncertainty regarding the de-escalation of the Iran war. US futures experienced a decline of 0.1 percent. Tokyo’s Nikkei 225 was trading 0.3 percent lower at 53,607.75. South Korea’s Kospi experienced a decline of 1.9 per cent, closing at 5,537.30. Hong Kong’s Hang Seng declined by 1.4 per cent, settling at 24,978.71, whereas the Shanghai Composite index experienced a decrease of 0.6 per cent, reaching 3,909.16. Australia’s S&P/ASX 200 saw a slight decline of 0.2 per cent, whereas Taiwan’s Taiex experienced an increase of 0.4 per cent.
Oil prices experienced an increase once more on Thursday following a previous decline. Brent crude, the international benchmark, increased by 1.3 percent to USD 98.51 per barrel. On Wednesday, it was recorded at below USD 95. Benchmark US crude rose by 1.6 per cent, reaching USD 91.75 a barrel. The increase in oil prices occurred as Tehran on Wednesday rejected a ceasefire proposal from the US, following the administration of US President Donald Trump presenting a 15-point plan to Iran. Additionally, Trump this week postponed a self-imposed deadline to “obliterate” its power plants, aiming to compel Iran to reopen the Strait of Hormuz.
Iran also escalated its attacks on Israel and Gulf Arab nations as Israel conducted airstrikes on Tehran and the US readied to send additional American troops to the region. The Strait of Hormuz, a vital waterway situated between Iran and Oman, through which approximately a fifth of the world’s oil usually transits, has largely remained closed since the onset of the Iran war. As a result, oil prices have experienced significant fluctuations, rising nearly 40 percent since the conflict began, now entering its fourth week. On Wednesday, Wall Street stocks finished the day on a positive note. The S&P 500 increased by 0.5 percent, reaching 6,591.90. The Dow Jones Industrial Average increased by 0.7 percent, reaching 46,429.49, while the Nasdaq composite saw a rise of 0.8 percent, settling at 21,929.83.
US-listed shares of Arm Holdings surged by 16.4 percent after the UK company announced its plans to launch and sell its own chips, a move anticipated to boost future revenue. On Holding, the Swiss sportswear company known for its On running shoes, experienced a decline of 11.2 percent in the US market. The company’s CEO, Martin Hoffmann, is stepping down, and the organization has appointed two co-founders to serve as co-CEOs. In other transactions early Thursday, gold and silver prices experienced a decline. Gold prices fell by 0.8 percent, settling at USD 4,513.90 per ounce. Silver prices declined by 0.9 percent, settling at USD 71.97 per ounce. The US dollar decreased to 159.42 Japanese yen, down from 159.47 yen. The euro was trading at USD 1.1570, an increase from USD 1.1559.
