HONG KONG: Asian stocks retreated, and oil prices rose on Friday as the fragile ceasefire with Iran was strained by missile and drone attacks that prompted US retaliatory strikes on Iranian military facilities.
US futures rose despite the latest flare-up in the conflict. Investors are closely watching the war situation as negotiations between the US and Iran to end the war make limited progress. Tehran said Thursday that it was still examining the latest proposals from the US for ending the war. Tokyo's Nikkei 225 fell 1.1 per cent to 62,174.12 after closing the day before at a record high of 62,833.84. It also briefly crossed the 63,000 mark for the first time during Thursday trading. SoftBank Group, one of Japan's largest stocks, lost more than 5 percent.Elsewhere in Asia, South Korea's Kospi fell 1.1 per cent to 7,409.63. Hong Kong's Hang Seng dropped 1.3 per cent to 26,289.50. The Shanghai Composite index shed 0.3 per cent to 4,167.56. Australia's S&P/ASX 200 lost 1.7 per cent to 8,729.40.
ASIAN STOCK FALLS AFTER IRAN WAR Taiwan's Taiex was 0.5 per cent lower. India's Sensex declined 0.6 percent. Oil prices traded higher early Friday after falling the day before. Brent crude, the international standard, climbed 1.1 per cent to USD 101.13 per barrel. Brent crude was roughly USD 70 a barrel before the Iran war began in late February.Benchmark US crude rose 0.7 per cent to USD 95.47 a barrel. The US Central Command said Thursday that it intercepted “unprovoked” Iranian attacks on Navy ships in the Strait of Hormuz, although no vessels were struck. But US President Donald Trump told reporters the ceasefire with Iran was still intact. The United Arab Emirates, a US ally, said early Friday that its air defences were “actively engaging” with a missile and drone attack.
Oil and fuel prices are expected to remain elevated for as long as the Strait of Hormuz, a key waterway for oil and gas transit, remains largely closed, and a US sea blockade on Iranian ports continues.On Thursday, US stocks pulled back from records. The benchmark S&P 500 fell 0.4 per cent to 7,337.11. The Dow Jones Industrial Average slipped 0.6 per cent to 49,596.97, while the technology-heavy Nasdaq composite dropped 0.1 per cent to 25,806.20.Shares of Whirlpool sank 11.9 per cent following weaker-than-expected results, and Shake Shack tumbled 28.3 percent likewise. McDonald's fell 0.1 per cent after recording its latest quarterly revenue that was better than what analysts had expected.The US dollar fell to 156.87 Japanese yen from 156.93 yen. The euro was trading at USD 1.1729, up from USD 1.1726.