Asian markets experienced a downturn on Thursday, following a decline in U.S. stocks that ended a nine-day winning streak for the S&P 500. The drop in Asian shares was accompanied by a decrease in oil prices, which had previously surged due to renewed tensions between the United States and Iran.

Market Reactions

In Japan, the Nikkei 225 index fell by 1.9% to 67,101.83, as traders opted to sell technology stocks to secure gains. Notably, SoftBank Group saw a significant drop of 10.4%, while Shin-Etsu Chemical decreased by 3.8%. Hong Kong’s Hang Seng index also declined by 1.3% to 25,299.29, and the Shanghai Composite index fell by 0.4% to 4,067.46. South Korea’s Kospi index sank 1.7% to 8,651.87, and Australia’s S&P/ASX 200 declined by 1.5% to 8,657.40.

On Wednesday, the U.S. stock market saw the S&P 500 fall by 0.7% from its record high, closing at 7,553.68. The Dow Jones Industrial Average dropped 1.2% to 50,687.07, while the Nasdaq composite decreased by 0.9% to 26,853.98. Palo Alto Networks contributed to the market’s decline, falling 5.6% despite reporting better-than-expected quarterly profits.

Economic Pressures

The bond market also exerted pressure on stocks, with the yield on the 10-year Treasury rising to 4.49% from 4.46% the previous day. This increase in yields, coupled with fluctuating oil prices, poses a threat to economic growth and stock prices globally. The average long-term U.S. mortgage rate has reached its highest level in nine months, potentially impacting borrowing for businesses, particularly smaller companies.

Despite these challenges, some positive economic indicators emerged. The Institute for Supply Management reported stronger-than-expected growth in U.S. construction, agricultural, and other services sectors. However, businesses are feeling the impact of higher prices due to tariffs and increased oil costs.

Oil and Currency Movements

Oil prices remain below their peaks from earlier in the U.S.-Iran conflict, with Brent crude falling by $1.17 to $96.64 per barrel and U.S. crude dropping by $1.08 to $94.94 per barrel. There is hope on Wall Street that the U.S. and Iran will eventually agree to reopen the Strait of Hormuz, which would enhance the global flow of crude oil and potentially lower prices.

In currency markets, the U.S. dollar fell to 159.90 Japanese yen from 160.08 yen, while the euro rose to $1.1610 from $1.1600.

Original reporting: KTBS 3 (Shreveport) — read the source article.