Most Asian markets gave up early gains to end lower Thursday, following reports that the U.S. had intercepted at least three Iranian oil tankers in Asian waters, stoking concerns that the Middle East conflict could drag on.
The Nikkei 225 disposed of its previously won gains this week, dropping 445.63 points, or 0.8%, to close Thursday at 59140.23.
Japan’s manufacturing activity expanded at its fastest pace in four years in April, according to the S&P Global flash Purchasing Managers’ Index, as firms boosted output amid supply concerns linked to Middle East tensions.
Index heavyweight Softbank Group Corp closed 3.86% higher at 5,867. A Bloomberg report said the company is taking on more debt in its push for AI, seeking a $10 billion margin loan backed by its OpenAI holdings.
In Hong Kong, the Hang Seng docked 248.04 points, or 1%, to 25,915.20.
Earlier in the session, Japan and South Korea stocks hit record highs, trailing overnight gains on Wall Street after President Donald Trump extended a ceasefire with Iran, boosting investor sentiment alongside strong corporate earnings.
Korea’s markets actually gained, hitting an intraday high at one point. The country’s economy grew more than expected in the first three months of the year, recording the fastest growth since the third quarter of 2020.
The 1.7% growth in January to March from the previous quarter exceeded Reuters’ estimates of 1.0% and rebounded from the 0.2% contraction in the prior quarter.
Samsung Electronics ended the session more than 3% higher, after its shares had hit a new intraday record of 227,000 in early trade.
Investors were also monitoring labor developments, as the company’s unions expected more than 30,000 workers to attend a rally in South Korea on Thursday, ahead of a planned strike next month.
The U.S. military has intercepted at least three Iranian-flagged tankers in Asian waters and is redirecting them away from positions near India, Malaysia and Sri Lanka, shipping and security sources said on Wednesday.
This followed Iran’s navy saying it had seized two container ships in the Strait of Hormuz.
The ceasefire will remain in place until Iran submits a proposal or talks conclude, while the U.S. military continues its blockade of Iranian ports, Trump said.
However, the timeline remains uncertain. Iranian state media reported Wednesday that Tehran’s negotiators would not attend talks with the U.S., calling them a “waste of time.” A lack of commitment from Iran reportedly prompted Vice President JD Vance to pause his trip to join peace talks.
The West Texas Intermediate futures rose 1.33% to $94.20 per barrel overnight. Brent crude added 1.21% to $103.50 per barrel.
In other markets
The CSI 300 index in Shanghai shed 13.3 points, or 0.3%, to 4,786.33.
In Taiwan, the Taiex removed 164.32 points, or 0.4%, to 37,714.15
South Korea’s Kospi moved ahead 57.88 points, or 0.9%, to 6,475.81
In Singapore, the Straits Times Index subtracted 58.61 points, or 1.2%, to 4,944.11
In Australia, the AZX 200 dumped 50.15 points, or 0.6%, to 8,794.93.
In New Zealand, the NZX 50 skidded 60.67 points, or 0.5%, to 12,884.93.
