Asian Stocks Tumble as Tensions Rise in the Middle East
HONG KONG (AP) — Asian stocks took a hit on Friday, with Japan’s Nikkei plummeting 3.5% due to heavy selling of semiconductor-related shares and other market heavyweights. The region was gripped by tensions in the Middle East, and U.S. futures also saw a sharp decline.
The state-run IRNA news agency reported that Iran fired air defense batteries early Friday morning after reports of explosions near the city of Isfahan, causing oil prices to jump about $3.
In Japan, the benchmark Nikkei 225 dropped 3.51% to 36,742.05. Semiconductor equipment supplier Lasertec was the biggest loser, losing 9.7% in morning trading. Other tech-related shares also saw declines, with Renesas down 7.3%, Tokyo Electron losing 7.8%, and Sony Group Corp. declining 3.3%. Automaker Toyota Motor Corp was down 3.7%.
Japan’s headline inflation rate in March slowed to 2.7%, with the core-core index falling below 3% for the first time since November 2022. The yen was slightly firmer against the U.S. dollar.
Elsewhere, Australia’s S&P/ASX 200 dipped 1.7%, South Korea’s Kospi dropped 2.9%, Hong Kong’s Hang Seng declined 1.4%, and the Shanghai Composite edged down 0.1%.
On Wall Street, the S&P 500 fell 0.2%, marking its fifth straight loss. The Dow Jones Industrial Average edged up 0.1%, while the Nasdaq composite slipped 0.5%. Equifax and Las Vegas Sands were among the biggest losers, while Elevance Health and Genuine Parts saw gains.
Stocks have been struggling as bond yields rise, putting pressure on the market amid expectations of high interest rates. Reports showing a stronger U.S. economy than expected have led to speculation that the Federal Reserve may not cut interest rates as previously anticipated.
In oil trading, U.S. benchmark crude rose to $85.50 per barrel, while Brent crude gained to $90.51 per barrel. The euro dropped to $1.0623.
Investors are closely watching the situation in the Middle East and the impact it may have on global markets as tensions continue to escalate.
