Asian Stocks Reverse Gains as Geopolitical Risks Weigh
Asian stock markets declined on Thursday, giving up early gains in a volatile session as ongoing tensions between the United States and Iran kept investors cautious despite strong technology earnings.
Regional equities initially tracked overnight gains from the S&P 500 and Nasdaq Composite, both of which closed at record highs after U.S. President Donald Trump extended a ceasefire with Iran.
However, sentiment quickly turned negative due to renewed concerns over global oil supply disruptions linked to the Strait of Hormuz.
Nikkei and KOSPI Pull Back from Record Levels
Japan’s Nikkei 225 fell 1.1% to 58,952.1 points after briefly surpassing the 60,000 mark earlier in the session.
South Korea’s KOSPI slipped 0.5% to 6,384.29 points, retreating from a record high of 6,557.76 points, supported earlier by strong gains in the technology sector.
Tech Earnings Boost Sentiment
Chipmakers played a key role in supporting markets, particularly after SK Hynix reported blockbuster results, with operating profit rising more than fivefold in the first quarter.
The surge was driven by robust demand for high-bandwidth memory and AI-related chips, as global tech companies increase investments in data centers. Nvidia, a major partner of SK Hynix, continues to benefit from the AI boom.
Shares of SK Hynix dipped slightly after hitting a record high earlier, while Samsung Electronics rose 2.3%.
South Korea Economic Data Surprises
Economic data provided some support to sentiment, with South Korea’s GDP growing faster than expected in the first quarter. The economy expanded by 1.7% quarter-on-quarter, beating forecasts of around 0.9%, while annual growth reached approximately 3.6%, well above expectations.
Iran Tensions Keep Markets on Edge
Investor sentiment remained fragile as oil prices stayed above $100 per barrel, close to recent highs, amid ongoing disruptions in the Strait of Hormuz.
Iran’s seizure of two commercial vessels shortly after the ceasefire announcement highlighted the fragile nature of the truce and reinforced concerns about global energy supply.
Broader Asia Markets Decline
China’s Shanghai Composite and CSI 300 both fell 0.5%, while Hong Kong’s Hang Seng Index dropped 1%.
Elsewhere, Australia’s S&P/ASX 200 and Singapore’s Straits Times Index each declined by around 1%. Futures linked to India’s Nifty 50 also fell 0.7%.
