Asian markets moved lower on Wednesday as investors weighed ongoing uncertainty in the Middle East alongside fresh concerns over the outlook for global technology stocks and inflation.
Sentiment remained fragile after Iran’s chief negotiator warned that Washington must accept Tehran’s latest peace proposal or risk the collapse of ceasefire efforts, following comments from US President Donald Trump that the regional truce was close to breaking down.
Although both sides have continued to issue warnings and threats, markets appear to believe neither Iran nor the US currently wants a return to full-scale conflict.
Attention is now turning towards Trump’s high-profile visit to China, where he is expected to hold extensive talks with Chinese President Xi Jinping covering Iran, trade, artificial intelligence and wider geopolitical tensions.
Across Asia, equity markets weakened broadly. Hong Kong, Shanghai, Taipei, Sydney, Bangkok, Manila and Kuala Lumpur all traded lower, while Jakarta dropped nearly 2% as Indonesia’s rupiah slid to a record low.
The Middle East conflict continues to disrupt global energy markets, with shipping activity through the Strait of Hormuz — a critical route for roughly one-fifth of global oil supplies — reportedly slowing dramatically.
Despite supply concerns, oil prices eased slightly during Asian trading hours. Brent crude fell 0.6% to around USD107 per barrel, while US benchmark West Texas Intermediate declined 0.5% to approximately USD101 per barrel.
On Wall Street, US stocks ended lower on Tuesday after stronger-than-expected inflation data reduced expectations for Federal Reserve interest rate cuts.
The S&P 500 slipped 0.2%, while the technology-heavy Nasdaq Composite fell 0.7%, as investors reassessed the outlook for monetary policy and high-growth technology valuations amid persistent inflation pressures.
