Market Overview#
Asian stock markets experienced a downturn on Thursday, reversing earlier gains in a day marked by volatility. Investors remained cautious due to ongoing tensions between the U.S. and Iran, despite strong earnings reports from technology companies.
Nikkei and KOSPI Performance#
Japan’s Nikkei 225 index fell by 1.1%, closing at 58,952.1 points after reaching a record high of 60,198.0 points earlier in the day. Similarly, South Korea’s KOSPI index dipped 0.5% to 6,384.29 points, having previously peaked at 6,557.76 points. The decline in these indices came despite strong performance from technology stocks, particularly chipmakers like SK Hynix, which reported a significant increase in profits driven by demand for advanced memory chips used in artificial intelligence applications.
Economic Data Boosts Sentiment#
Positive economic data from South Korea contributed to a mixed sentiment in the markets. The country’s economy grew by 1.7% in the first quarter, surpassing expectations of 0.9%. Additionally, annual growth reached approximately 3.6%, indicating a robust economic performance that helped support investor confidence, at least temporarily.
Ongoing U.S.-Iran Tensions#
Despite the positive earnings and economic data, investor sentiment remained fragile due to persistent tensions between the U.S. and Iran. Oil prices stayed above $100 per barrel, influenced by recent incidents in the Strait of Hormuz, where Iran seized two commercial vessels shortly after a ceasefire announcement by President Trump. This situation raised concerns about potential disruptions in global oil supply, further impacting market stability.
In other markets, China’s Shanghai Composite and the blue-chip Shanghai Shenzhen CSI 300 both fell by 0.5%, while Hong Kong’s Hang Seng index declined by 1%. Australia’s S&P/ASX 200 and Singapore’s Straits Times Index also slipped by 1% each, and futures tied to India’s Nifty 50 index dropped by 0.7%.