Asian markets traded lower on Friday as investors continued monitoring developments surrounding the Iran conflict and the conclusion of US President Donald Trump’s summit with Chinese President Xi Jinping in Beijing.
Japan’s Nikkei 225 fell 1.2% to 61,880.04 after reversing earlier gains, while South Korea’s Kospi dropped 3.2% after recently breaking above the 8,000 level for the first time amid enthusiasm surrounding artificial intelligence-related stocks.
Hong Kong’s Hang Seng declined 0.9%, while mainland China’s Shanghai Composite edged 0.1% higher.
Elsewhere, Australia’s S&P/ASX 200 slipped 0.1%, Taiwan’s Taiex fell 0.5%, and India’s Sensex traded modestly higher.
Investor sentiment remained cautious as Trump concluded his visit to China following talks with Xi covering trade, economic cooperation and Taiwan.
Energy markets remained volatile after Trump suggested the US did not require the Strait of Hormuz to reopen, despite the route’s importance to global oil supplies.
Brent crude climbed back above USD107 per barrel as traders continued pricing in supply disruption risks linked to the ongoing Middle East conflict.
Despite broader geopolitical uncertainty, US equities continued reaching fresh record highs on Thursday.
The S&P 500 gained 0.77% to close at a new all-time high of 7,501, while the Nasdaq Composite rose 0.88% to another record close of 26,635.
Technology and semiconductor stocks remained the key drivers of the rally, led once again by NVIDIA, which surged 4.39% and has gained more than 10% over the past five sessions alone.
NVIDIA’s market capitalisation has now expanded to approximately USD5.7 trillion, underlining continued investor enthusiasm surrounding artificial intelligence infrastructure and chip demand.
Meanwhile, sterling weakened sharply after Labour MP Josh Simons announced he would resign his seat to allow Andy Burnham to return to Parliament and potentially challenge Prime Minister Keir Starmer for the Labour leadership.
The pound fell around 0.5% against the US dollar to approximately USD1.34 as markets reacted to escalating political uncertainty in the UK.
