Asian and Pacific markets traded modestly lower on Thursday as escalating tensions in the Middle East and rising oil prices weighed on investor sentiment and encouraged a risk-off tone across regional equities.
The weakness followed confirmation from United States Central Command that American forces had launched additional “self-defence strikes today at 5:15 p.m. ET against multiple targets in Iran at the Commander in Chief’s direction,” according to a post on X.
By 11:25 am AEST (1:25 am GMT), Australia’s S&P/ASX 200 index was down 0.5%, Japan’s Nikkei 225 had fallen 0.2%, and South Korea’s KOSPI 200 declined 0.4%.
In South Korea, fresh labour market data showed early signs of weakening employment conditions.
According to the Ministry of Data and Statistics, the number of employed people aged 15 and older fell by 40,000 in May compared with the same period a year earlier, marking the first annual decline in 17 months.
The unemployment rate held steady at a seasonally adjusted 2.8%, but officials noted that external pressures, including the ongoing Middle East conflict, were contributing to rising uncertainty in hiring conditions.
Employment growth has also slowed in recent months, easing from more than 200,000 gains earlier in the year to 74,000 in April.
In the United States, equity markets closed lower on Wednesday. The Dow Jones Industrial Average fell 1.9%, the S&P 500 dropped 1.6%, and the Nasdaq Composite declined 2% as technology shares led losses.
Commodity markets reflected heightened volatility. Brent crude rose 1.8% to US$93.10 per barrel, supported by fears of supply disruption linked to the Middle East conflict.
Gold, however, retreated sharply, falling 4.4% to US$4,071.31 per ounce, its lowest level since November 2025.
In China, equities also finished weaker. The Shanghai Composite Index fell 0.4% to 3,993.2, while the CSI 300 declined 1.1% to 4,748.6.
Hong Kong’s Hang Seng Index slipped 0.6% to 24,408.0, while India's BSE Sensex edged up 0.1% to 73,983.2.
European markets ended the previous session in a mixed fashion. In the United Kingdom, the FTSE 100 rose 0.3% to 10,254.8, while Germany’s DAX fell 1% to 24,195.3 and France’s CAC 40 declined 0.5% to 8,161.8.
