Asia-Pacific stocks opened lower on Friday, as cautious optimism regarding developments in the Middle East conflict failed to overcome concerns that the ceasefire remains fragile. Asian sentiment diverged from Wall Street’s record high, as market participants assessed that geopolitical and energy risks could still fuel volatility.
US President Donald Trump confirmed that Israel and Lebanon had agreed to a 10-day ceasefire, which would take effect at 5:00 p.m. ET. Iran’s parliament speaker had previously called a halt to Israeli attacks on Lebanon a crucial condition for US-Iran negotiations to begin. Trump also said the next round of face-to-face US-Iran talks could take place “probably by the end of next week,” while the current US-Iran ceasefire is currently scheduled to expire on April 21.
In energy markets, oil prices fell, dampening risk sentiment. WTI weakened 1.43% to US$93.34 per barrel, while Brent fell 1.14% to US$98.28 per barrel, indicating the market remains sensitive to potential changes in supply flows amidst dynamics in the Strait of Hormuz.
From Japan, the government highlighted the impact of oil volatility on the foreign exchange market. Finance Minister Satsuki Katayama said the Japan Bank for International Cooperation (JBIC) would open an investment window of up to 600 billion yen to help Asian countries secure energy supplies, adding that oil volatility had impacted the exchange rate market. Investors also paid close attention to comments from Bank of Japan Governor Kazuo Ueda, who emphasized that the central bank needs to take Japan’s low real interest rates into account when determining policy.
Asian indices showed a correction after the previous rally. The Nikkei 225 fell 0.7% after hitting a record on Thursday, while the Topix fell 0.62%. South Korea’s Kospi weakened 0.43% and the Kosdaq fell 0.35%, while Australia’s ASX 200 fell 0.28%. Hang Seng futures were at 26,229, compared to their last close of 26,394.26. Meanwhile, in the US, the S&P 500 rose 0.26% to 7,041.28, and the Nasdaq Composite added 0.36% to 24,102.70. The latter recorded its 12th consecutive winning session—its longest streak since 2009—keeping global markets focused on whether the risk-on mood can persist as the ceasefire issue enters a crucial phase next week. (asd)
Source: Newsmaker.id