This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets fell Friday as Israel conducted a military strike on Iran, targeting its nuclear program, while Iran vowed to retaliate.
Japan’s benchmark Nikkei 225 fell 1.12% while the Topix lost 0.96%. South Korea’s Kospi was 0.98% lower and the small-cap Kosdaq declined 2.91%.
Australia’s S&P/ASX 200 lost 0.23%.
Hong Kong’s Hang Seng index fell 0.72% while mainland China’s CSI 300 lost 0.72%.
India’s Nifty 50 lost 1.01%, while the BSE Sensex was down 1.42%.
Israel’s defense minister announced a ‘special situation’ after Israel attacked Iran. The Israeli military has begun airstrikes against Iran, two U.S. officials told NBC News. The officials added that there was no U.S. involvement.
Defense Minister Israel Katz said, “Following the State of Israel’s preemptive strike against Iran, a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future.
Oil prices jumped more than 10%. U.S. West Texas Intermediate rose 10.21%, to $74.99 per barrel, while global benchmark Brent surged 10.28%, to $76.48 per barrel.
“The market has largely been shrugging off geopolitical risk for the last year, and these development have been a wakeup call that these risks are more tangible and imminent than many expect,” Saul Kavonic, head of energy research at MST Marquee told CNBC via email.
“It is possible these attacks could be calibrated to add pressure on U.S. Iran negotiations and the situation subsequently de-escalate,” he said.
U.S. stock futures slid on Thursday night as tensions in the Middle East worsened.
U.S. producer prices in May rose just 0.1% from the previous month, coming in cooler than the 0.2% jump expected by economists surveyed by Dow Jones. The softer reading helped boost major stock indexes, while bond yields declined, improving investor sentiment. This followed a cooler-than-expected consumer inflation report earlier in the week.
Overnight stateside, all three key benchmarks closed higher. The S&P 500 rose, helped by a rally in Oracle that lifted the big tech sector. The benchmark climbed 0.38% to close at 6,045.26. The broad market S&P 500 now sits less than 2% off its record high. The Nasdaq Composite gained 0.24% and ended the day at 19,662.48. The Dow Jones Industrial Average added 101.85 points, or 0.24%, settling at 42,967.62.
— CNBC’s Riya Bhattacharjee, Lisa Kailai Han, Pia Singh, Sean Conlon contributed to this report.
Tata Group shares fall in wake of Air India plane crash
Shares of Tata Group, the parent conglomerate behind Air India since 2022, fell 0.61% following the deadly crash of one of its planes Thursday.
The Boeing 787 Dreamliner plane that was bound for London and carrying 242 people crashed seconds after takeoff in western India on Thursday, killing all but one person on board.
Tata Technologies, which signed a deal with Air India to redesign and upgrade aircraft interiors in 2024, saw its shares fall 1.98%.
—Lee Ying Shan
Bitcoin prices slipped following Israeli strikes
Bitcoin slipped over 3% after Israel launched a series of airstrikes against Iran.
The price of the flagship cryptocurrency was lower at $104,154.38. Ether slipped over 7% to $2,503.55.
The move comes after Bitcoin recently held above $100,000 for more than 30 days in a row for the first time ever. The milestone may be seen as a psychological hurdle by many, but was a positive indication for the digital asset.
—Lee Ying Shan, Tanaya Macheel
Safe havens climb after Israel’s military strikes on Iran
Safe haven assets climbed after Israel conducted military strikes against Iran early Friday local time.
Spot gold prices jumped over 1% to trade at $3,429.79 per ounce as of 9.44 a.m. Singapore time.
The 10-year Treasury yield was down around one basis point at 4.347%. The 2-year yield slipped almost one basis point to 3.899%. The 30-year Treasury yield similarly was down around one basis point to 4.833%.
One basis point is equivalent to 0.01%. Yields and prices move in opposite directions, meaning prices are higher.
—Lee Ying Shan
Oil prices surge 9% on heels of Israeli strikes, set for largest single-day gains in about five years
Crude oil futures jumped as much as 13% Thursday evening after Israel launched airstrikes against Iran without U.S. support.
U.S. West Texas Intermediate was last up 9.66% at $74.64 per barrel, while global benchmark Brent surged 9.27% to $75.79 per barrel, setting them on course for the largest single-day gains since 2020.
Oil markets are now concerned that Iran will retaliate by attacking either Israeli or American targets, leading to a major military escalation and a potential oil supply disruption, said Andy Lipow, president of Lipow Oil Associates.
“Iran knows full well that President Donald Trump is focused on lower energy prices,” Lipow told CNBC, adding that actions by Iran affecting Middle Eastern oil supplies and consequently raising gasoline and diesel prices for Americans are politically damaging to the U.S. president.
—Lee Ying Shan
Stocks end Thursday higher
The major averages closed Thursday’s trading on a positive note.
The S&P 500 added 0.38%, ending at 6,045.26. The advance brings the broad market index less than 2% off from its February record high. The Nasdaq Composite gained 0.24% to close at 19,662.48. Finally, the Dow Jones Industrial Average added 101.85 points, or 0.24%, settling at 42,967.62.
—Darla Mercado
