Precise Investors Editorial Team
Optimism faded amid risks to global oil supply following recent incidents in the Strait of Hormuz
Asian stock markets dropped on Thursday, reversing early gains in volatile trading as persistent U.S.-Iran tensions kept investors cautious despite strong technology earnings.
Markets opened higher. However, optimism faded amid risks to global oil supply following recent incidents in the Strait of Hormuz.
Shanghai Composite index and the blue-chip Shanghai Shenzhen CSI 300 dropped 0.5% each, while Hang Seng index shed 1%.
Nikkei 225 traded 1.1% lower at 58,952.1 points after hitting a record high of 60,198.0 points earlier in the day.
KOSPI edged down 0.5% to 6,384.29 points, after hitting a high of 6,557.76 points, supported by strength in technology stocks.
Chipmakers had supported moves after SK Hynix Inc reported blockbuster earnings. The Nvidia supplier posted a more than five-fold jump in first-quarter operating profit.
The results were driven by strong demand for high-bandwidth memory and other chips used in artificial intelligence applications, as global tech firms ramp up data centre investments.
SK Hynix shares edged lower after hitting a record high in early trading. Samsung Electronics stock gained 2.3%.
Economic data from South Korea also supported sentiment. Asia’s fourth-largest economy grew faster than expected in the first quarter, with gross domestic product expanding 1.7% quarter-on-quarter, beating forecasts of nearly 0.9%, while annual growth accelerated to around 3.6%, well above expectations.
Sentiment remained fragile as oil prices held above $100 per barrel, close to recent highs, as supply through the Strait of Hormuz remained halted.
Iran on Wednesday seized two commercial vessels in the Strait of Hormuz just hours after U.S. president’s ceasefire announcement, underscoring the fragility of the truce.
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