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(Bloomberg) — Asian stocks were poised for losses on Thursday as renewed clashes between the US and Iran added strain to a fragile ceasefire, while pushing oil prices higher.
Equity-index futures for Japan and Hong Kong pointed to losses at the open, with a regional stock gauge set to end four days of gains. US share futures fell around 0.4% after the underlying benchmarks pulled back from record highs, with the S&P 500 snapping a nine-day winning streak. After the close, Broadcom Inc. shares tumbled in post-market action as its outlook failed to impress investors.
US crude steadied after gaining 2.4% in the previous session after the US and Iran exchanged fire overnight, drawing Kuwait and Bahrain into one of the most serious flare-ups since a ceasefire took effect in early April. Rising oil prices and signs of resilience in the US labor market sent Treasuries lower, as traders increased bets that the Federal Reserve’s next move will be to raise interest rates.
The moves followed days of rising tensions in the Middle East, including Israeli operations against Hezbollah in Lebanon, that risk derailing US-Iran talks and undermining a fragile ceasefire. While the AI-driven rally has propelled equities to record highs, a fresh wave of geopolitical risks is testing investors’ willingness to look past higher oil prices.
