Asian Markets Falter as US Inflation and Iran Tensions Weigh
Asian markets faltered on Wednesday as hot US inflation and a shaky Iran ceasefire weighed on investors. Stocks started the day lower, with the MSCI's broadest index of Asia-Pacific shares outside Japan slipping 0.6% for the second day in a row.
The Korean market, which had been on a tear in recent weeks due to an AI-led rally, saw its shares fall as much as 3.2% before rebounding. The Nikkei was down 0.2%, and S&P 500 e-mini futures nudged 0.1% lower.
Analysts pointed to the hot US inflation report and persistent geopolitical tensions as major concerns for investors. 'A hotter-than-expected inflation report and persistent geopolitical tensions reminded investors that sticky prices and elevated energy costs are not going away anytime soon,' said Tony Sycamore, market analyst at IG in Sydney.
The conflict in the Middle East remained in a stalemate, with US President Donald Trump stating he does not think he will need China's help to end the war with Iran. Brent crude slipped 0.6% to $107.13, while oil prices have held at or above $100 a barrel since late February.
In Seoul, Samsung Electronics shares plummeted 5.7% after failing to reach a pay deal with its South Korean labour union, setting the stage for over 50,000 workers to go ahead with a full strike that threatens to disrupt production of AI and other chips.