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 after reports of explosions near the city of Isfahan, causing oil prices to surge by about $3. This news added to the already fragile sentiment in the market.
In Japan, the benchmark Nikkei 225 dropped 3.51% to 36,742.05. Semiconductor equipment supplier Lasertec was the biggest loser, shedding 9.7% in morning trading. Other tech-related shares like Renesas, Tokyo Electron, and Sony Group Corp. also saw significant declines.
Toyota Motor Corp was down 3.7%, adding to the overall negative sentiment in the market. 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.
Meanwhile, 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%. Overnight on Wall Street, the S&P 500 fell 0.2%, marking its fifth consecutive loss.
The market has been grappling with rising bond yields and concerns about the Federal Reserve’s interest rate policy. Reports showing a stronger-than-expected U.S. economy have fueled speculation that the Fed may keep rates high for a longer period.
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 from $1.0644.
Investors are closely watching the developments in the Middle East and the Fed’s next move as they navigate through the current market volatility.
