Asian Stocks Weaken, US-Iran Talks Stalled!
Asian markets opened lower amid growing concerns that US-Iran talks have not shown significant progress in easing the Middle East conflict, while the Strait of Hormuz remains effectively closed. The MSCI Asia Pacific fell 0.1% in early trading, reflecting investor caution regarding energy supply risks and their impact on inflation.
Globally, Wall Street saw limited movement on Thursday, but Nasdaq 100 futures rose 0.6% early Friday after Intel's earnings report sparked optimism. Intel shares surged 19% in after-hours trading after its sales projections beat expectations, while semiconductor stocks were the outlier, posting a 17-session winning streak.
Risk appetite weakened as oil rebounded. Brent opened up 1.1% to $106.20 per barrel on Friday, boosted by a geopolitical premium due to uncertainty over when Hormuz flows might recover. The dollar index held firm and headed for its best monthly performance, while Treasuries maintained their weakness after higher oil prices rekindled inflation concerns.
The market believes the next direction will be largely determined by whether tensions shift toward diplomacy or escalate again. Market participants are monitoring signals from Washington and Tehran, including developments in the Hormuz field, as continued disruptions risk keeping oil prices high and weighing on global growth prospects. Some analysts believe that as long as flows in the strait remain limited, supply tightening will continue and oil prices will remain supported.
Outside of equities and oil, the yen was flat early Friday after weakening for four consecutive sessions, while Japan's Finance Minister stated that authorities were monitoring speculative movements that were keeping the yen weak. Gold opened relatively stable after falling in the previous session, and Bitcoin was flat at around $78,000.
Looking ahead, the market remains headline-driven: developments in US-Iran talks, the status of the Hormuz shipping line, and policy responses will be key determinants of cross-asset movements. On the fundamental side, the earnings season still provides a cushion, as around 80% of US equity benchmarks have so far surpassed first-quarter earnings estimates. However, sensitivity to oil and inflation remains high as long as geopolitical risks persist. (Asd)
Source: Newsmaker.id
