China, Hong Kong stocks slip
Mainland Chinese and Hong Kong stock slipped on Friday, as renewed hostilities broke out between the United States and Iran, threatening a shaky ceasefire, while investors awaited next week’s meeting between top leaders of the world’s two largest economies.
At the midday break, the benchmark Shanghai Composite index lost 0.43 percent, while the blue-chip CSI300 Index fell 0.9 percent. In Hong Kong, the benchmark Hang Seng Index declined 1.09 percent, while the city’s tech shares eased 1.08 percent.
For the week, both SSEC and CSI300 looked set for their fifth straight weekly rise, with the former set to gain 1.22 percent and the latter up 1.02 percent this week.
The HSI looked set to gain 2.17 percent for the week.
The United States and Iran exchanged fire on Thursday in the most serious test yet of their month-long ceasefire, but Iran said the situation returned to normal while the US said it did not want to escalate.
Semiconductor shares led the losses, as investors took profit following recent gains. A sub-index tracking the sector lost 3.49 percent. Shanghai’s tech-focused STAR50 Index dropped 2.9 percent at the lunch break.
Australian shares fall
Australian shares slipped on Friday, driven by losses in financials and miners, as investors exited equities after the United States and Iran exchanged fire, casting doubt upon the Middle East ceasefire and dampening risk appetite.
The S&P/ASX 200 index fell 1 percent to 8,788.40 by 0025 GMT.
The benchmark rose 1 percent on Thursday.
The main index is set to finish the week with a slight 0.5 percent rise, as investor optimism has ticked up over the last two sessions amid possible negotiations for a US-Iran peace deal.
That, however, did not sustain after renewed hostilities overnight.
Crude futures surged as much as 3 percent on the news, highlighting inflationary pressures fuelled by the spike in oil prices. Banking stocks fell 1.3 percent, and were set to close the week little changed.
Westpac was the top drag on the sub-index as it traded ex-dividend.
The remaining “Big Four” banks also traded in the red. Macquarie bucked the sub-index’s trend to touch its peak after the country’s top investment bank booked its highest yearly profit in three years, boosted by earnings from its commodities arm that benefited from market volatility due to the Middle East conflict.
Japan’s Nikkei retreats from record high
Japan’s Nikkei share average pulled back on Friday from a record high set in the last session, as SoftBank Group fell and renewed US-Iran hostilities weighed on investor sentiment.
The Nikkei was down 0.3 percent at 62,636.00, as of 0104 GMT.
It jumped 5.6 percent on Thursday to close at a record high after crossing the psychological level of 63,000 for the first time.
The broader Topix was down 0.66 percent at 3,815.09.
“Compared with the previous session’s sharp gains, the decline in today’s market is marginal,” said Hitoshi Asaoka, chief strategist at Asset Management One.
Also weighing on the market was a rise in crude oil prices after the United States and Iran exchanged fire and put a month-long Middle East ceasefire in doubt.
Technology investor SoftBank Group fell 4.6 percent to drag the Nikkei lower the most after the US-listed shares of Arm Holdings tumbled overnight on smartphone market weakness and AI chip supply concerns.
Fibre optic cable maker Fujikura lost 1.18 percent. Bank shares weighed on the Topix, with Mitsubishi UFJ Financial Group and Mizuho Financial Group losing 2.11 percent and 3.54 percent, respectively. Sony Group slipped 2.3 percent.
Chip-testing equipment maker Advantest reversed early losses to rise 1 percent.
Silicon wafer maker Sumco jumped 10.22 percent to become the top percentage gainer on the Nikkei.
Indian shares decline
Indian shares fell on Friday as oil prices rose again after renewed US-Iran attacks in the Middle East dented hopes of a resolution to the conflict, worsening the outlook for Asia’s third-largest economy.
The Nifty 50 fell 0.43 percent to 24,222.65, as of 10:23 a.m. IST, while the BSE Sensex shed 0.48 percent to 77,484.74.
Eleven of the 16 major sectors were trading in the red.
The broader small-caps and mid-caps rose 0.3 percent and 0.1 percent, respectively.
Heavy-weight HDFC Bank fell 1.5 percent, while ICICI Bank and Reliance Industries rose 0.8 percent each.
Other Asian markets fell 1.3 percent as Brent jumped above $100 a barrel, after briefly slipping below the mark in the previous session, after the US and Iran exchanged fire on Thursday in the most serious test yet of their month-long ceasefire.
“Markets have come under pressure due to renewed geopolitical concerns, reflecting fragility in sentiment and vulnerability to Middle East developments,” said Ponmudi R, CEO of Enrich Money. Britannia Industries fell 4.5 percent, as multiple brokerages flagged a moderation in sales as a concern despite the biscuit maker posting a rise in the March quarter profit.
European shares pull back
European shares slipped on Thursday after a steep rally in the previous session, as investors assessed progress towards a US-Iran peace deal that pushed crude prices sharply lower.
The pan-European STOXX 600 ended 1.1 percent lower after rising more than 2 percent on Wednesday. Most regional bourses, including in France, Germany and Britain , also fell.
European energy stocks dropped 2.5 percent as crude fell below USD100 a barrel. Shell lost 2.9 percent despite beating first-quarter profit estimates and raising its dividend by 5 percent.
Oil prices came under pressure as the US and Iran edged towards a temporary agreement to halt their war, sources and officials said. Tehran is reviewing a proposal that would stop the fighting but leave the most contentious issues unresolved.
European equities have lagged global peers since the conflict began, with elevated energy costs from supply disruption following the closure of the Strait of Hormuz fuelling inflation fears and clouding growth prospects.