Investing.com– Asian stock markets fell on Thursday, reversing early gains in volatile trading as persistent U.S.-Iran tensions kept investors cautious despite strong technology earnings.
Regional markets opened higher, tracking overnight gains on Wall Street, where the S&P 500 and closed at fresh record highs after President Donald Trump extended a ceasefire with Iran.
However, optimism faded amid risks to global oil supply following recent incidents in the Strait of Hormuz.
U.S. stock index futures slipped during Asian hours.
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Nikkei surpasses 60,000 points; hits fresh peak
Japan’s traded 1.1% lower at 58,952.1 points after hitting a record high of 60,198.0 points earlier in the day.
South Korea’s KOSPI edged down 0.5% to 6,384.29 points, after hitting a peak of 6,557.76 points, supported by strength in technology stocks.
Chipmakers had supported moves after reported blockbuster earnings. The Nvidia (NASDAQ:NVDA) supplier posted a more than five-fold jump in first-quarter operating profit.
The results were driven by strong demand for high-bandwidth memory and other chips used in artificial intelligence applications, as global tech firms ramp up data centre investments.
SK Hynix (KS:000660) shares edged lower after hitting a record high in early trading. stock rose 2.3%.
Economic data from South Korea also supported sentiment. Asia’s fourth-largest economy grew faster than expected in the first quarter, with expanding 1.7% quarter-on-quarter, beating forecasts of around 0.9%, while annual growth accelerated to about 3.6%, well above expectations.
US-Iran tensions persist despite ceasefire extension
Sentiment remained fragile as held above $100 per barrel, close to recent highs, as supply through the Strait of Hormuz remained halted.
Iran on Wednesday seized two commercial vessels in the Strait of Hormuz just hours after Trump’s ceasefire announcement, underscoring the fragility of the truce.
China’s and the blue-chip fell 0.5% each, while Hong Kong’s declined 1%.
Elsewhere, Australia’s S&P/ASX 200 and Singapore’s slipped 1% each.
Futures tied to India’s fell 0.7%.