Asian Shares Slide As US-Iran Tensions Persist

(RTTNews) - Asian stocks retreated on Thursday as oil prices continued to surge amid the continued closure of the critical Strait of Hormuz.

In a significant escalation of the Middle East conflict, Iran seized two cargo ships seeking to exit the Gulf via the vital global oil route and warned that the U.S. and Israel will not achieve their goals 'through bullying.'

Parliamentary Speaker Mohammad Bagher Ghalibaf said that there can be no full ceasefire between the two countries if the U.S. naval blockade on Iranian ports persists.

Gold was subdued at $4,721 an ounce in Asian trade as the dollar held firm after two days of gains.

Brent crude futures climbed above $103 a barrel, extending gains for the fourth straight session as diplomatic efforts between the U.S. and Iran showed little progress, and EIA data revealed declines in U.S. inventories across key refined products.

China's Shanghai Composite index dipped 0.32 percent to 4,093.25 after a choppy session. Hong Kong's Hang Seng index fell 0.95 percent to 25,915.20, weighed down by losses in financials stocks. Shares of HSBC Holdings ended down more than 2 percent. Japanese markets surrendered early gains to end notably lower as profit-taking emerged at higher levels. The Nikkei average ended 0.75 percent lower at 59,140.23, after having climbed to a record high of 60,013 earlier.

The broader Topix index fell 0.76 percent to 3,716.38. Lasertec, Disco, Sumco, Furukawa Electric and Sumitomo Electric fell 3-5 percent while technology investor SoftBank jumped 3.9 percent.

Seoul stocks closed at a fresh record high for a third day running after data showed the country's economy grew more than expected in the first three months of the year despite the ongoing crisis.

The 1.7 percent growth in January to March from the previous quarter marked the fastest quarterly expansion in 5 1/2 years.

The Kospi average closed 0.90 percent higher at 6,475.81 after a volatile session. Market bellwether Samsung Electronics surged 3.2 percent while its chipmaking rival SK Hynix ended on a flat note despite posting record first-quarter revenue and profit.

Australian stocks ended lower as a survey showed Australia's private sector activity stabilized in April after March's decline.

The benchmark S&P/ASX 200 dropped 0.57 percent to 8,793.40 while the broader All Ordinaries index settled 0.55 percent lower at 9,024.20. Oil & gas firm Santos rallied 3.6 percent after reporting increased production in Q1 2026.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index closed 0.47 percent lower at 12,884.93. hitting its lowest level since April 1.

U.S. stocks rallied overnight as strong earnings outweighed lingering tensions around Iran and the Strait of Hormuz.

The tech-heavy Nasdaq Composite surged 1.6 percent and the S&P 500 added 1.1 percent to reach new record closing highs as President Trump extended the U.S. ceasefire with Iran to allow more time for talks but maintained an American blockade of Iranian ports. The narrower Dow advanced 0.7 percent.

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