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Asia stocks slip as geopolitics trump data

Asian equity markets traded mixed to lower on Thursday, giving up early gains after reports that the US military had intercepted several Iranian oil tankers in Asian waters reignited concerns that the Middle East conflict could be prolonged. This came despite strong US technology earnings that pushed Wall Street indices to fresh records on Wednesday and upbeat economic data from Japan and South Korea. Oil prices continued to climb as US–Iran peace efforts remained stalled, while European stocks struggled after a further sharp drop in consumer confidence and UK inflation edged higher in March. Investors will be watching a raft of Purchasing Managers’ Indices in Europe and the UK as well as US weekly jobless claims later on Thursday for fresh signals on the global growth outlook.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

Navigator_Asian_Stock_Market_Sentiment

Asian equity markets surrendered early gains and turned lower on Thursday after reports that the US military had intercepted at least three Iranian oil tankers in Asian waters, reinforcing concerns that the conflict in the Middle East could be prolonged. Regional indices including Japan’s Nikkei 225 and South Korea’s Kospi briefly hit record intraday highs, supported by strong US corporate earnings and US President Donald Trump’s decision this week to extend a ceasefire with Iran, before falling back. Late in the session, Japan’s Nikkei 225 was trading 0.9% lower, after manufacturing activity expanded at the fastest pace in four years in April. Meanwhile, while Korea’s Kospi was 0.2% higher, after while South Korea’s economy grew 1.7% in the first quarter compared with the previous three months, its strongest quarterly expansion since the third quarter of 2020.  Australia’s S&P/ASX 200 was down 0.8%. Hong Kong’s Hang Seng Index was 1.1% weaker and mainland China’s CSI 300 was trading 0.2% lower, while India’s Nifty 50 was down 0.8%.

Oil climbs as US–Iran talks stall

Oil prices extended their rally on Thursday, with Brent trading near USD 104 per barrel after gaining almost 13% over the past three sessions and West Texas Intermediate hovering around USD 95, as peace efforts between the US and Iran remained deadlocked. In other markets, gold prices were trading weaker around USD 4700 per ounce on Thursday, while silver also declined as investors rotated into risk assets following robust US earnings. US Treasury yields edged higher across the curve, with the two-year yield around 3.8% and the ten-year yield near 4.3%, while the US dollar was little changed overall. Bitcoin was trading slightly lower, around USD 77,900.

US tech indices hit fresh records

US equities advanced on Wednesday, led by technology shares, as the Nasdaq 100 rose 1.7% to a new record high and the S&P 500 climbed 1.1% to just below its own peak, while the Dow Jones Industrial Average added 0.7%. Investors reacted positively to President Trump’s decision to extend the ceasefire in the conflict with Iran by several days, despite ongoing geopolitical tensions, and continued to focus on potential winners from artificial intelligence trends. Company results strongly influenced individual stocks, with aircraft maker Boeing gaining 5.5% on higher first-quarter revenues and narrower losses. Electric vehicle maker Tesla reported first-quarter revenue of USD 22.39 billion on Wednesday, up 16% year-on-year and slightly above analysts’ expectations, with adjusted earnings per share of USD 0.41 also ahead of forecasts. Tesla released the figures after the market close, and the stock initially jumped in after-hours trading before reversing course after management guided for capital expenditure of more than USD 25 billion in 2026, implying negative free cash flow for the rest of the year.

EU consumer confidence drops sharply

Consumer confidence in the European Union deteriorated further in April, according to a flash estimate released on Wednesday by the European Commission, with the EU indicator falling by four percentage points from March to -19.4. Sentiment in the euro area declined in parallel, dropping 4.2 percentage points to -20.6, as the continuous slide since the start of the Iran war pushed confidence in both regions clearly below their long-term averages. The latest readings mark the weakest levels since the turn of 2022/23, underscoring how heightened geopolitical tensions are weighing on households’ assessments of the economic outlook. Most major European equity indices ended lower on Wednesday despite record gains on Wall Street. The Euro Stoxx 50 declined 0.5%, while Germany’s DAX fell 0.3% and France’s CAC 40 dropped 1%. The Swiss Market Index also lost 0.5%.

UK inflation edges higher in March

UK consumer price growth picked up in March as the headline Consumer Prices Index (CPI) rose 3.3% year-on-year, up from 3% in February, according to data released on Wednesday. On a monthly basis, CPI increased 0.7%, more than double the 0.3% rise recorded in March last year. The main upward pressure on inflation came from transport, particularly motor fuels, where petrol and diesel prices climbed sharply, and from housing and household services, driven by a surge in domestic heating oil costs, while clothing and footwear provided the largest offsetting downward contribution as discounting patterns softened price growth.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from American Express, Comcast, Freeport-McMoran, Gilead, Intel, KLA, Lockheed Martin, Nestle, NextEra Energy, Nokia, Relx, Roche, Safran, Sanofi, SAP, STMicroelectronics, Thermo Fisher Scientific, Union Pacific, and Vinci.

Economic data in focus: Purchasing Managers’ Indices from several countries, including France (09:15), Germany (09:30), euro area (10:00) and UK (10:30); US weekly initial jobless claims (14:30).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.