Asia-Pacific markets fell Friday as oil prices soared on renewed fears that a prolonged conflict in the Middle East could further crimp energy supplies, stoking fears of a global economic downturn.
In Japan, the Nikkei 225 fell 663.35 points, or 1.2%, to 53,819.61. Honda Motor plunged over 6%, the biggest drag on Nikkei, after the automaker forecast its first annual loss in almost 70 years.
In Hong Kong, the Hang Seng doffed 251.16 points, or 1%, to 23,465.60.
Iran’s new Supreme Leader Mojtaba Khamenei said in a late Thursday speech that the Strait of Hormuz, a vital artery for global oil trade, should remain shut and that Tehran could open other fronts in the war if the conflict persists.
Commander of the Iranian Revolutionary Guard Corps Navy, Alireza Tangsiri, also doubled down on the threat in a social media post, warning of “the harshest blows to the aggressor enemy.”
Bettors on prediction market Kalshi raised their wagers that the U.S. economy may enter a recession this year, with the likelihood climbing to 32% — highest level this year.
International benchmark Brent crude jumped 9.22% to close at $100.46 per barrel on Thursday. It was the first time Brent closed above $100 since August 2022. U.S. West Texas Intermediate futures rose 9.72% to settle at $95.73.
In other markets
In Shanghai, the CSI 300 shed 18.42 points, or 0.4%, to 4,669.14
In Korea, the Kospi index slid 96.01 points, or 1.7%, to 5,487.24
In Singapore, the Straits Times Index dipped 13.06 points, or 0.3%, to 4,842.27.
In Taiwan, the Taiex index fell back 181.54 points, or 0.5%, to 33,400.32.
In Australia, the ASX backtracked 11.95 points, or 0.1%, to 8,617.09.
In New Zealand, the NZX 50 settled 11.95 points, or 0.1%, to 13.187.34.
