On Thursday (4 June, 9:21 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific mirrored declines on Wall Street as concerns over escalated tensions between Iran and the United States sustained higher oil prices and heightened fears about energy costs and inflation.
The movement followed reports that Iranian forces targeted Kuwait International Airport, after the U.S. military announced it had intercepted Iranian missiles and drones and conducted retaliatory strikes on Qeshm Island in the Persian Gulf. These actions, according to the U.S. Central Command, were undertaken in response to Tehran’s attempted attacks.
Broader risk appetite was tempered as the robust rally in technology stocks, particularly those linked to artificial intelligence, showed signs of exhaustion. Shares in Broadcom Inc. retreated following a weaker-than-anticipated earnings outlook, adding pressure to the sector’s recent strong run and raising doubts about the sustainability of gains based on AI momentum.
On the macroeconomic front, recent employment data from the U.S. revealed the largest increase in private payrolls since January 2025. Attention now turns to additional labor market indicators: investors await weekly jobless claims on Thursday and the official employment report set for release Friday.
Japan’s NIKKEI dropped by 1.95% to 67,068.41. South Korea’s KOSPI plummeted by 2.07% to 8,619.24, and Australia’s ASX 200 declined by 1.28% to 8,673.40.
As for stocks in China, Shanghai’s SSEC slid by 0.12% to 4,079.23. Hong Kong’s HSI fell by 1.07% to 25,359.45, while Shenzhen’s SZI rose by 0.22% to 15,738.69.
The U.S. stock markets edged down on Wednesday as the Dow Jones Industrial Average (DJIA) lost 1.21% to 50,687.07. NASDAQ contracted by 0.89% to 26,853.97, and S&P 500 diminished by 0.74% to 7,553.68. VIX surged by 1.84% to 16.06.
As for commodities, oil prices settled higher on Wednesday following renewed clashes in the Middle East and stalled diplomatic efforts between Iran and the United States. Brent crude finished the session higher by $1.81, or 1.89%, closing at $97.81 per barrel. U.S. West Texas Intermediate crude settled at $96.02, up $2.26, or 2.41%.
However, prices reversed course on Thursday as a ceasefire agreement between Israel and Lebanon raised expectations for a wider settlement to address the conflict. In addition, the U.S. House of Representatives passed a resolution to limit President Donald Trump’s authority to take military action, further easing geopolitical tensions.
This morning, Brent futures dipped $1.13, or 1.16%, to $96.68 per barrel, and the WTI futures slumped $1.02, or 1.06%, to $95.00 per barrel.
Meanwhile, gold futures grew by 0.37% to $4,483.40 per Troy ounce.
