Asian stocks closed mostly lower on Friday, reflecting significant declines on Wall Street amid ongoing geopolitical tensions in the Middle East. U.S. President Donald Trump announced a 10-day extension on military actions against Iran, following Iran’s rejection of a U.S. ceasefire proposal. This uncertainty has fueled market volatility, with gold prices rising nearly 2% and Brent crude nearing $110 a barrel as fears of an energy crisis loom.
Chinese markets showed resilience, with the Shanghai Composite gaining 0.63% after industrial profits surged 15.2% year-over-year, countering broader regional declines. In contrast, Japanese stocks fell slightly as inflation concerns mount, driven by rising energy prices and a drop in U.S. Treasuries. South Korean stocks also faced pressure, particularly in the semiconductor sector, with Samsung Electronics and SK Hynix both closing lower.
Market professionals should closely monitor the implications of rising energy prices on inflation forecasts, as the OECD has raised its G20 inflation prediction to 4% for 2023. This shift could influence central bank policies and investor sentiment moving forward.
Source: nasdaq.com