Asian equities pulled back from record levels as rising oil prices and renewed shipping disruptions in the Gulf weighed on sentiment.
MSCI’s broad Asia-Pacific index briefly hit a fresh high before reversing course to trade around 0.5% lower, tracking a late bout of selling across the region.
Japan’s Nikkei 225 touched a new high for a second straight session before falling 0.9%, while markets in South Korea and Taiwan also gave up earlier gains after reaching record levels.
In China, blue-chip stocks dropped 0.8%, and Hong Kong’s Hang Seng Index slid 1.1%.
The pullback came despite a strong lead from Wall Street, where the S&P 500 rose 1% and the Nasdaq Composite jumped 1.6% to fresh record closes, supported by a solid start to earnings season.
Oil prices were a key drag, with Brent crude climbing 1.4% to above $103 per barrel, extending a 3.5% surge in the previous session as tensions in the Middle East escalated.
Iran’s seizure of two container ships attempting to transit the Strait of Hormuz has heightened concerns over supply disruption, with investors closely watching whether the fragile ceasefire in the region will hold.
