Asian stock markets mostly declined on Thursday as investor concerns over the escalating U.S.-Iran conflict weighed on sentiment, while oil prices eased slightly but remained at elevated levels.
U.S. stock futures were largely unchanged, while losses in artificial intelligence-related shares pressured markets in South Korea and Japan.
South Korea’s Kospi index plunged 6.4% to 6,816.70 after the Bank of Korea raised interest rates for the first time since 2023, aiming to contain inflation pressures linked to the Iran conflict. Chipmakers led the decline, with SK Hynix falling 11.5% and Samsung Electronics dropping 8.8%.
Japan’s Nikkei 225 fell 2.8% to 66,835.54, dragged lower by technology stocks. Memory chipmaker Kioxia tumbled 15%, while Tokyo Electron declined 4.5% and Advantest lost 5.9%. SoftBank Group also dropped 6.3%.
Taiwan’s Taiex ended nearly unchanged, while chip giant TSMC announced an additional $100 billion investment in U.S. semiconductor manufacturing capacity, alongside reporting record quarterly earnings.
Hong Kong was a regional exception, with the Hang Seng Index rising 1.4% to 25,015.57. Alibaba shares gained 3.7% after China approved Apple Intelligence for use in the country, with Alibaba confirming that its Qwen AI model will be integrated into the platform.
China’s Shanghai Composite Index fell 1.9% to 3,882.41, while Australia’s S&P/ASX 200 closed almost flat at 8,840.70. India’s Sensex rose 0.4%.
Oil Prices Remain High Amid Gulf Tensions
Oil prices slipped slightly on Thursday but stayed significantly above pre-conflict levels as the United States intensified strikes against Iran and Tehran launched missile and drone attacks toward Kuwait and Bahrain.
Brent crude fell 0.5% to $84.57 per barrel, compared with around $72 before the conflict began in late February. U.S. West Texas Intermediate crude declined 0.2% to $79.43 per barrel.
ING commodities strategists Warren Patterson and Ewa Manthey said oil prices had recorded a third consecutive day of gains amid limited signs of de-escalation between Washington and Tehran.
They noted that rising tensions were affecting shipping activity in the Persian Gulf, with tanker traffic through the strategically important Strait of Hormuz remaining under pressure.
Wall Street Gains on Inflation Data, Strong Earnings
U.S. markets closed higher on Wednesday after data showed inflation slowed in June and major companies reported stronger earnings.
The S&P 500 gained 0.4% to 7,572.40, the Dow Jones Industrial Average rose 0.3% to 52,658.64, and the Nasdaq Composite advanced 0.6% to 26,269.23.
BlackRock shares jumped 6.6% after the investment firm reported better-than-expected quarterly revenue and profits.
SpaceX shares briefly fell below their initial public offering price of $135 before recovering some losses.
In currency markets, the U.S. dollar eased to 162.02 yen from 162.19 yen, while the euro strengthened to $1.1473 from $1.1464.
