Asian stock markets ended mostly lower on Thursday as investors reacted to renewed geopolitical tensions in the Middle East, rising oil prices, and concerns about inflationary pressures.
Regional sentiment weakened after reports of fresh military clashes involving the United States and Iran raised fears that a fragile ceasefire effort could collapse, sending energy markets sharply higher.
Japan’s benchmark Nikkei 225 fell roughly 0.5% to 1.5%, pulling back from recent record highs as technology and industrial shares came under pressure. Investors locked in profits after a powerful artificial intelligence-driven rally pushed Japanese equities to historic levels earlier this month. Export-oriented stocks were also weighed down by uncertainty surrounding oil prices and global trade conditions.
Hong Kong’s Hang Seng Index dropped more than 1%, with weakness in financial and property shares leading declines.
Chinese markets were more stable, with the Shanghai Composite hovering near flat territory as investors balanced concerns over global tensions with optimism surrounding additional stimulus measures from Beijing.
Investors also continued monitoring China’s economic recovery and ongoing support for the country’s technology and infrastructure sectors.
South Korea’s KOSPI outperformed many regional peers earlier in the week thanks to continued strength in semiconductor and artificial intelligence-related stocks. Chipmakers remained in focus after optimism surrounding global AI demand fueled buying interest across Asia’s technology sector. Reuters also reported expectations for South Korean exports to rise for a twelfth consecutive month, supported by strong semiconductor shipments.
Meanwhile, Australia’s ASX 200 suffered one of its weakest sessions of the year, sliding more than 1% as mining and energy-linked sectors reacted to swings in commodity prices.
Rising Brent crude prices and falling metals prices contributed to broader market volatility across the Asia-Pacific region.
Despite Thursday’s declines, many analysts believe Asia’s long-term outlook remains supported by strong AI investment trends, resilient corporate earnings, and expectations that central banks could begin easing monetary policy later this year.
