Asia Markets Today | May 8: Asian markets traded lower on Friday amid concerns over renewed hostilities between the US and Iran in the Strait of Hormuz. The US and Iran exchanged fire in the Strait of Hormuz, with each side claiming the other initiated the attack. Iran's military accused the US of violating the ceasefire between the two countries, saying the US had targeted two ships in the Strait of Hormuz and attacked civilian areas. Meanwhile, Trump threatens more strikes on Tehran if deal not signed 'fast'.
Trump claimed in a subsequent Truth Social post that the US "completely destroyed" Iranians involved in the exchange, which he said included small boats and drones that "dropped ever so beautifully down to the Ocean, very much like a butterfly dropping to its grave!" He added that Iran will face further attacks if they do not agree to a nuclear deal. "Just like we knocked them out again today, we'll knock them out a lot harder, and a lot more violently, in the future, if they don't get their Deal signed, FAST!" Trump wrote.
Follow Live Updates: Stock Market News Today: GIFT Nifty Hints At Negative Open; Brent Crude Resumes Rally Over Fresh US-Iran Attacks
The escalation comes just 48 hours after Trump briefly paused 'Project Freedom' in the Strait of Hormuz - an operation launched to escort ships from multiple countries safely through the restricted waterway - citing significant progress toward a final agreement with Iran.The United States and Iran were edging toward a temporary agreement to halt the war, with Tehran reviewing a proposal that would stop the fighting but leave the most contentious issues unresolved.
Asian Shares Today
South Korea's Kospi slipped 0.67% while the small-cap Kosdaq was 0.62% higher. Japan's Nikkei 225 slipped 0.36% amid some profit-taking after hitting a record high on Thursday. Australia's S&P/ASX 200 extended early losses, declining 1.44%. Mainland China's CSI300 index was trading 0.60% lower, while Hong Kong's Hang Seng index dropped 0.82%.
This comes after Japan's Nikkei 225 crossed the 62,000 mark for the first time on Thursday, extending a sharp rally across Asia-Pacific markets despite renewed warnings from Trump over Iran. The benchmark Japanese index rose as much as 5.7% to 62,931 in earky trade on Thursday. The broader Topix index rose 1.91% Japan's most recently confirmed intervention happened in July 2024, when it spent about $36.8 billion to bolster the yen after it sank to a 38-year low of 161.96 per dollar.
ALSO READ: Brent Crude Climbs 3% To Reclaim $102/Barrel-Mark As Oil Jumps On Renewed US-Iran Tensions
US Stock Market
The S&P 500 ended lower on Thursday, with Intel and other chip stocks retreating after a recent rally, while uncertainty around U.S.-Iran peace talks weighed on the wider market. Tech-heavy Nasdaq Composite slid 0.13% and ended at 25,806.20. The tech-heavy index had also scored a fresh all-time high during the session. The Dow Jones Industrial Average shed 313.62 points, or 0.63%, settling at 49,596.97. Intel and Advanced Micro Devices both declined about 3%, giving back gains from earlier this week.
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