Asia-Pacific markets opened lower on Friday, as cautious optimism surrounding developments in the Middle East failed to fully offset investor uncertainty, diverging from Wall Street’s record-setting performance.
Sentiment remained fragile despite United States President Donald Trump stating that the war in Iran “should be ending pretty soon”, reinforcing expectations that the conflict may be nearing a resolution.
Hours earlier, Trump confirmed that Israel and Lebanon had agreed to a 10-day ceasefire set to begin at 5 pm ET (9 pm GMT), a move seen as a potential stepping stone towards broader regional de-escalation.
Iran’s parliamentary speaker has indicated that a halt in Israeli attacks on Lebanon is a key condition for initiating negotiations between the United States and Iran.
Trump also said that the next round of in-person talks between Washington and Tehran could take place “probably, maybe, next weekend”.
A separate two-week ceasefire between the U.S. and Iran is due to expire on 21 April, adding a near-term focal point for markets.
By 11:20 am AEDT (1:20 am GMT), Australia’s S&P/ASX 200 had fallen 0.4%, Japan’s Nikkei 225 declined 1%, and South Korea’s KOSPI 200 slipped 0.5%.
The subdued performance came despite a strong lead from the United States, where major benchmarks ended Thursday’s session higher. The Dow Jones Industrial Average rose 0.2%, while the S&P 500 and Nasdaq Composite extended their rallies, gaining 0.3% and 0.4%, respectively, with both indices reaching fresh record highs.
In commodities markets, oil prices surged overnight, with Brent crude rising 4.7% to US$99.39 per barrel, while spot gold was little changed at US$4,789.80 per ounce.
Chinese equities posted gains in the previous session, with the Shanghai Composite Index rising 0.7% to a four-week high of 4,055.5. The CSI 300 added 1.1% to 4,736.6, marking its strongest level since early March.
Elsewhere in the region, Hong Kong’s Hang Seng Index climbed 1.7% to 26,394.3, while India’s BSE Sensex edged 0.2% lower to 77,988.7.
European markets delivered a mixed performance overnight. The UK’s FTSE 100 rose 0.3% to 10,590.0, Germany’s DAX gained 0.4% to 24,154.5, while France’s CAC 40 slipped 0.1% to 8,262.7.
