Asia-Pacific markets opened lower on Thursday, tracking overnight losses on Wall Street, as ongoing tensions between Iran and the United States kept oil prices elevated and heightened concerns over inflation and energy costs.
Geopolitical risks escalated after Kuwait International Airport was struck by Iran early Wednesday, coming a day after the U.S. Central Command said it had defeated multiple Iranian ballistic missiles and drones, and conducted “self-defence strikes” on Qeshm Island in the Persian Gulf. The US said the action was in response to “attempted attacks” by Tehran.
By 11:40 am AEST (1:40 am GMT), Australia’s S&P/ASX 200 fell 1.2%, Japan’s Nikkei 225 dipped 1.8%, retreating from yesterday's record highs, and South Korea’s KOSPI 200 lost 1.1%.
In economic data, Australia’s seasonally adjusted balance on goods rose by $2.815 billion in April, slightly below expectations of $1.8 billion, but rebounding from a deficit of $1.84 billion in the previous reading, which was the first deficit since December 2017.
Goods credits (exports) increased by $3.18 billion, or 7.2%, driven by metal ores and minerals, while goods debits (imports) rose by $365 million, or 0.8%, led by fuels and lubricants.
On Wall Street overnight, major U.S. benchmarks retreated from record highs. The Dow Jones Industrial Average fell 1.2%, the S&P 500 declined 0.7%, and the Nasdaq Composite lost 0.9%.
In commodities, ICE Brent crude rose 1.9% to settle at US$97.81 per barrel, while spot gold slipped 1.2% to US$4,434.27 per ounce.
In Mainland China, markets pushed higher, with the SSE Composite Index adding 0.2% to 4,084.0 and the CSI 300 rising 0.5% to 4,938.8.
Hong Kong’s Hang Seng Index fell 1.6% to 25,633.2, while India’s BSE Sensex closed 0.4% lower at 74,346.2.
In Europe, equities also finished in negative territory on Wednesday. The UK’s FTSE 100 declined 0.4% to 10,332.3, Germany’s DAX dropped 1.3% to 24,795.9, and France’s CAC 40 slipped 0.7% to 8,150.4.
