- Asian stocks fell, with MSCI Asia Pacific down 0.6% and Nikkei 225 dropping 1.3%
- The US dollar neared a two-week high, while the yen weakened past 160 per dollar
- Brent crude prices stayed near $120 amid ongoing US-Iran geopolitical tensions
Asian stock markets cracked on Thursday, tracking overnight losses in key US benchmarks as oil prices extended gains amid no signs of a US-Iran breakthrough, while the Federal Reserve held interest rates steady. The MSCI Asia Pacific index slipped 0.6%.
Japanese shares declined as trading resumed after a holiday. The benchmark Nikkei 225 shed1.3%, while the broader Topix fell 1.7%. South Korea's Kospi swung between gains and losses.
Hong Kong's Hang Seng index futures last traded at 25,882, compared with the index's Wednesday close of 26,111.84. In Australia, the S&P/ASX 200 lost 0.43%.
The dollar hovered near its highest in more than two weeks after some Federal Reserve policymakers turned hawkish. The Japanese yen weakened past the critical 160 per dollar threshold on Thursday, reaching its lowest level since July 2024.
Oil Prices
Oil prices climbed further with global benchmark Brent crude hovering around the $120-a-barrel mark, as geopolitical tensions between the U.S. and Iran showed little sign of easing. The rally reflects growing concerns that supply disruptions could persist longer than initially expected. US benchmark West Texas Intermediate (WTI) edged up to around $107. The move follows a sharp surge in the previous session, when Brent jumped about 6% and WTI rallied 7%.
ALSO READ: Brent Crude Surges To $120 As US-Iran Standoff Tightens Oil Supply Fears
Wall Street
Stocks on Wall Street ended Wednesday's volatile session on a mixed note as oil prices jumped and tensions escalated between the US and Iran over the Strait of Hormuz. Markets also digested a divided Federal Reserve policy decision and looked ahead to quarterly results from four megacap companies released after the close.
The S&P 500 settled flat, with losses in industrial and healthcare stocks offsetting gains in the energy sector. Nvidia and Microsoft were the largest point drags on the index. In contrast, the tech-heavy Nasdaq 100 advanced 0.6%.
The Federal Reserve left interest rates unchanged but highlighted growing disagreement among policymakers over the future path of rates. Treasury yields rose as investors increased bets on a possible rate hike next year. Fed Chair Jerome Powell said at a press conference that the number of officials favoring more neutral language in the policy statement has “increased,” signaling a subtle shift toward a more hawkish stance.
Futures tied to the S&P 500 added 0.4%, while Nasdaq 100 futures gained 0.9%. Dow Jones Industrial Average futures fell 130 points, or 0.2%.
ALSO READ: Wall Street Highlights: Nasdaq Gains, S&P 500 Flat As Fed Holds Rates, Oil Spikes
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
