Asia-Pacific markets experienced a significant drop on Friday, following Israel’s military airstrikes on Iran aimed at its nuclear program. Defying the region’s recent stability, Japan’s Nikkei 225 fell by 1.12%, while the Topix index decreased by 0.96%. South Korea’s Kospi slipped 0.98%, and the small-cap Kosdaq saw a steeper decline of 2.91%. Australia’s S&P/ASX 200 edged down by 0.23%, with Hong Kong’s Hang Seng index and mainland China’s CSI 300 both recording a 0.72% loss. In India, the Nifty 50 declined by 1.01%, with the BSE Sensex down 1.42%.
The shift in market dynamics follows Israel’s offensive, with Defense Minister Israel Katz describing the situation as a “special situation.” Reports indicate that the Israeli military initiated airstrikes against Iran, as confirmed by two U.S. officials who clarified that there was no American involvement in these operations. Katz warned of anticipated retaliatory measures against Israel, which may include missile and drone attacks targeting Israeli civilians.
In the wake of the escalation, oil prices surged, with U.S. West Texas Intermediate climbing 10.21% to reach $74.99 per barrel, while global benchmark Brent oil rose 10.28% to $76.48 per barrel. Saul Kavonic, head of energy research at MST Marquee, commented on the market’s recent behavior, noting, “The market has largely been shrugging off geopolitical risk for the last year, and these developments have been a wake-up call that these risks are more tangible and imminent than many expect.” He added that the attacks could potentially be aimed at exerting pressure on U.S.-Iran negotiations, suggesting the situation might de-escalate.
In the United States, stock futures reflected the rising tensions, sliding Thursday night amid the deteriorating situation in the Middle East. Controversially, U.S. producer prices in May only saw a slight increase of 0.1% from the previous month, below the 0.2% anticipated by economists surveyed by Dow Jones. This softer inflation reading buoyed investor sentiment, improving major stock indexes as bond yields fell. Earlier in the week, a cooler-than-expected consumer inflation report had also contributed to positive market momentum.
On Wall Street, the three major indexes closed higher overnight. The S&P 500 saw a rise of 0.38%, boosted by a rally in Oracle, ending the day at 6,045.26. Now less than 2% away from its record high, this indicates strong resilience in the market despite external pressures. Meanwhile, the Nasdaq Composite gained 0.24%, concluding at 19,662.48. The Dow Jones Industrial Average added 101.85 points, or 0.24%, settling at 42,967.62.
As the geopolitical landscape continues to shift, investors remain watchful, balancing ongoing global tensions with local economic indicators that impact market performance.
— CNBC’s Riya Bhattacharjee, Lisa Kailai Han, Pia Singh, Sean Conlon contributed to this report.
Original Source: https://www.cnbc.com/2025/06/13/asia-pacific-markets-live-us-china-trade.html
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Publish Date: 2025-06-13 09:47:00
