Asia-Pacific markets declined on Friday, tracking losses on Wall Street overnight as investors assessed mixed signals surrounding negotiations between the United States and Iran.
United States President Donald Trump extended his deadline for potential strikes on Iran’s energy infrastructure by 10 days to 6 April, citing a request from Tehran as negotiations continue.
“As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction,” Trump said in a Truth Social post.
Despite Washington signalling a preference for a diplomatic resolution, Tehran has denied engaging in direct negotiations with the United States, contributing to ongoing market uncertainty.
By 11:50 am AEDT (12.50 am GMT), Australia’s S&P/ASX 200 fell 0.6%, while Japan’s Nikkei 225 dropped 1.9%. South Korea’s KOSPI 200 led losses, tumbling 4.3%.
Economic data from South Korea showed a slight deterioration in business sentiment. The Composite Business Sentiment Index (CBSI) for March edged down 0.1 points to 94.1, while the outlook for the following month fell 4.5 points to 93.1.
Manufacturing sentiment remained unchanged at 97.1, though its outlook declined by 3.0 points to 95.9. In the non-manufacturing sector, the index slipped 0.2 points to 92.0, with the outlook dropping 5.6 points to 91.2.
Investors are also awaiting upcoming industrial profit data from China, which is expected to provide insight into the financial health of the country’s industrial sector amid weak demand and intensifying competition.
The regional weakness followed a negative lead from Wall Street, where major benchmarks closed sharply lower.
The Dow Jones Industrial Average fell around 1%, while the S&P 500 declined 1.7%. The Nasdaq Composite dropped 2.4% as the index entered correction territory.
Commodity markets remained volatile. Brent crude rose 4.8% to US$101.89 per barrel, supported by supply concerns linked to disruptions in the Middle East, while spot gold fell 2.9% to $4,378.20 per ounce.
Elsewhere, Chinese equities also closed lower on Thursday, with the SSE Composite Index declining 1.1% to 3,889.1 and the CSI 300 falling 1.3% to 4,477.5.
In Hong Kong, the Hang Seng Index dropped 1.9% to 24,856.4, while India’s BSE Sensex was closed for a public holiday.
European markets also ended Thursday’s session in the red. The UK’s FTSE 100 fell 1.3% to 9,972.2, Germany’s DAX declined 1.5% to 22,613.0, and France’s CAC 40 slipped 1% to 7,769.3.
