Asian markets opened lower on Friday following a significant escalation in geopolitical tensions after an airstrike on Iran’s capital, reportedly carried out by Israel. The development has intensified concerns over regional stability and its impact on global oil supply chains.
U.S. benchmark crude rose by 8.2%, reaching $73.61 per barrel. Brent crude, the international benchmark, climbed $5.52 to settle at $74.88 per barrel.
In the stock markets, Japan’s Nikkei 225 dropped 1.2% to 37,721.63, South Korea’s Kospi fell 0.7% to 2,900.14, and Hong Kong’s Hang Seng slipped 0.4% to 23,929.62. China’s Shanghai Composite Index edged down 0.2%, and Australia’s S&P/ASX 200 decreased 0.3%.
Analysts note that although the conflict presents a significant global risk, Asian markets may recover swiftly due to limited direct involvement and stronger economic ties with unaffected nations such as Saudi Arabia and the UAE.
On Wall Street, stocks moved higher on Thursday, buoyed by encouraging inflation data that suggested a potential easing of price pressures. The S&P 500 rose 0.4%, the Dow Jones Industrial Average gained 0.2%, and the Nasdaq Composite advanced 0.2%.
Oracle shares surged 13.3% after the company reported better-than-expected earnings and projected a substantial increase in revenue for the upcoming fiscal year. Meanwhile, Boeing shares dropped 4.8% following a crash involving one of its aircraft in India, though the cause of the incident is still under investigation.
Treasury yields declined, with the 10-year note falling from 4.41% to 4.35%, as investors responded to signs of softer inflation and a potential cooling in the labor market. A separate report showed a modest rise in unemployment claims, reaching their highest level in eight months.
The Federal Reserve is scheduled to meet next week. While no immediate rate changes are anticipated, market sentiment suggests a potential rate cut could come as early as September.
