Asian Equities Fluctuate Amid US Initiates New Strikes Against Iran

(RTTNews) – Asian stocks closed mixed on Thursday, giving up early gains as investors digested Chinese inflation figures and monitored rising tensions in the Middle East.

U.S. forces carried out strikes against Iran for a second consecutive day on Wednesday, though President Donald Trump indicated he expects the escalation to be brief and that the United States does not seek a prolonged conflict.

Any potential gains were limited by renewed geopolitical tensions in the Middle East and uncertainty surrounding demand for artificial intelligence.

The dollar remained directionless in Asian trading after the FOMC minutes from the June 16‑17 meeting underscored the central bank’s cautious approach.

Gold edged higher after three consecutive days of declines, climbing above $4,100 per ounce, while Brent crude slipped more than 1 percent to below $78 a barrel following Trump’s assertion that any renewed confrontation with Iran would be short‑lived.

“I don’t anticipate a restart,” Trump said. “If they strike, we will respond tenfold. Any incident will be resolved quickly and will enhance safety, even for oil markets,” he added.

China’s Shanghai Composite index increased 1.65 percent to 4,036.59 following the release of mixed inflation data, whereas Hong Kong’s Hang Seng index fell 0.70 percent to 24,030.18.

June consumer price growth in China slowed more than anticipated, while the producer price index rose for a fourth straight month, reaching its highest level since July 2022, according to official data released today.

Japanese markets rebounded sharply after a three‑day slide, with the Nikkei Average climbing 1.38 percent to 67,743.85 as AI‑related stocks followed their U.S. counterparts higher; the broader Topix index edged up 0.35 percent to 4,020.37.

Advantest rose 5.9 percent and Tokyo Electron added 5.5 percent after Apple expanded its Broadcom partnership with a $30 billion chip deal and reports indicated that Beijing may grant limited approvals for Nvidia H200 chip purchases by select AI firms.

Seoul shares posted notable gains on institutional buying, with the Kospi index jumping more than 3 percent in early trade before trimming gains to close 0.62 percent higher at 7,291.91, driven by a rebound in technology stocks.

Chipmaker SK Hynix surged 5.3 percent after its U.S. listing was oversubscribed more than seven times; flash‑memory producer Kioxia Holdings jumped 8.3 percent despite Bain Capital divesting its entire stake.

Australian markets slipped for a fourth straight session, weighed down by sell‑offs in mining, gold and real‑estate stocks; the S&P/ASX 200 fell 0.26 percent to 8,762.50, and the All Ordinaries index slipped 0.20 percent to 8,961.30.

Across the Tasman, New Zealand’s S&P/NZX‑50 index rose 0.88 percent to 13,785.67, closing at a record high after data showed manufacturing activity surged to its strongest level in five years in June.

U.S. equities mostly declined overnight as investors voiced concerns about the economic fallout from the Iran conflict.

After declaring a ceasefire with Iran, President Trump referred to Iran’s leadership as “sick people,” expressing strong displeasure with the country’s military alliance with Spain.

Trump later warned that further strikes on Iran would be brief, emphasizing his opposition to a full‑scale war.

Minutes from the Fed’s June 16‑17 meeting revealed policymakers were divided on the future path of interest rates, presenting divergent arguments for both hikes and cuts.

The Dow fell 1.1 percent, the S&P 500 slipped 0.3 percent, while the Nasdaq Composite edged up 0.2 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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