Major equity indices in the Asia-Pacific region declined Thursday, with market sentiment weighed by Iran’s allegation that the United States breached conditions of a recently established ceasefire. The heightened geopolitical tensions contrasted with gains recorded in U.S. equity markets during the previous session.
Asian markets saw broad losses, with Japan’s Nikkei falling 0.53%, South Korea’s Kospi dropping 1.05%, China’s Shanghai Composite shedding 0.58%, Hong Kong’s Hang Seng Index slipping 0.44%, and Australia’s S&P/ASX 200 closing down 0.01%.
Investor caution heightened after Iran’s parliamentary speaker stated that the U.S. had not adhered to the two-week ceasefire arrangement, intensifying concerns over regional stability. Concerns heightened following remarks from Mohammad Bagher Ghalibaf, speaker of Iran’s parliament, who on Wednesday outlined specific breaches of the truce deal. Ghalibaf pointed to Israeli military operations in Lebanon, a drone incursion into Iranian airspace, and what he referred to as obstruction of Iran’s right to enrich uranium as violations of Iran’s ten-point ceasefire proposal.
Yesterday, US President Donald Trump indicated Iran’s suggested framework might provide grounds for negotiations, but stopped short of an outright endorsement. Visiting Hungary on Wednesday, Vice President JD Vance addressed Iran’s claims, affirming Washington’s stance that uranium enrichment by Iran remains unacceptable. He also clarified that the ceasefire arrangement did not extend to activities involving Lebanon.
Despite overseas volatility, U.S. stock indices advanced Wednesday, demonstrating resilience even after initial reports of Israeli military actions in Lebanon. The Dow Jones Industrial Average ended trading at 47,909.92, up 1,325.46 points, or 2.85%. The S&P 500 rose 2.51%, closing at 6,782.81. The Nasdaq Composite added 2.80% to finish at 22,634.99.
Commodities markets also responded to geopolitical developments. Brent crude for June settlement gained 2.84% to reach $97.44 a barrel during Thursday’s Asian trading, while May futures for West Texas Intermediate increased 3.52% to $97.73. These oil price recoveries followed a pronounced drop on Wednesday—marking the largest single-day loss for U.S. crude since 2020 and a roughly 20% swing.
Gold prices reached their highest level in nearly three weeks on Wednesday, lifted as the U.S. dollar and oil values retreated after news of a temporary truce between Washington and Tehran, which helped to dampen inflationary pressures. However, gold eased 0.60% to $4,748 per ounce in early trading on Thursday.
