Asia report: Markets fall and oil rises after Trump pulls out of Iran
Markets in Asia were mostly lower on Wednesday, with oil prices climbing after US President Donald Trump confirmed his decision overnight to pull the US out of the Iran nuclear deal.
AUD/USD
$0.6520
05:48 26/04/24
GBP/NZD
NZD2.0992
05:48 26/04/24
Hang Seng
17,611.17
10:21 25/04/24
Nikkei 225
37,780.35
09:43 25/04/24
USD/JPY
¥156.0620
05:48 26/04/24
In Japan, the Nikkei 225 was down 0.44% at 22,408.88, as the yen weakened 0.47% against the dollar to last trade at JPY 109.64.
Most sectors were on the back foot in Tokyo, although gains were seen among banking plays and miners.
Toyota shares surged 3.76%, beating its carmaking peers in Japan, which all declined, after it said it was now anticipating a 4.2% fall in operating profit for the financial year.
On the mainland, the Shanghai Composite was 0.08% lower at 3,158.81, and the smaller, technology-heavy Shenzhen Composite slipped 0.09%.
South Korea’s Kospi fell 0.24% to 2,443.98, while the Hang Seng Index in Hong Kong rose 0.44% to 30,536.14.
The petroleum sector was the star performer in Seoul, led higher by SK Innovation, which rose 1%.
Donald Trump delivered on an election promise on Tuesday, telling a press conference that he would withdraw the US from the 2015 Obama-brokered Iran nuclear deal.
He also said the broad sanctions previously imposed on the Middle Eastern state would be reintroduced.
The deal, hailed by world leaders as a serious sign of progress for Iran-West relations in 2015, lifted sanctions on the country in exchange for a supervised limit to its nuclear ambitions.
After Trump’s announcement, Iran said it remained committed to the agreement and would continue negotiating with its other parties.
The wider implications of the move were still not known, noted analysts at ANZ, adding that the announcement from the President “"puts into place a scenario that could see the crude oil market tighten significantly”.
Oil prices moved higher as a result, with Brent crude last up 2.32% at $76.63 per barrel, and West Texas Intermediate ahead 2.35% at $70.72.
In Australia, the S&P/ASX 200 managed gains of 0.26% to settle at 6,108.00, with losses for the hefty financials sector offset by gains in most other subindices.
Energy firms were ahead 1.34% alongside oil prices, as Woodside Petroleum shot up 1.22%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.3% at 8,619.83, led higher by the country’s retirement housing sector.
Metlifecare was up 1.9%, Ryman Healthcare added 3.1% and Summerset Group advanced 1.6% in Wellington trading.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.07% at AUD 1.3407 and the Kiwi advancing 0.29% to NZD 1.4306.