Stocks slide on flare-up of hostilities
Stocks slide on flare-up of hostilities
By Gregor Stuart HunterThu, June 4, 2026 at 12:43 AM UTC
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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 3, 2026. REUTERS/Brendan McDermid
By Gregor Stuart Hunter
SINGAPORE, June 4 (Reuters) - Asian stocks fell at the start of trading on Thursday as renewed fighting between the U.S. and Iran rattled stocks, even as conflicting signs of de-escalation left investors hesitant.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.8%, while S&P 500 e-mini futures slipped 0.4%. Korean shares reopened down 2% after a holiday, while Japan's Nikkei 225 slumped 1.3%.
"Financial markets shifted back into a risk-off mode as the U.S. and Iran exchanged fire again," analysts from Westpac wrote in a research report.
Stocks on Wall Street tumbled overnight, with the S&P 500 falling 0.7% and oil prices rising around 2% as hostilities in the Middle East erupted anew and talks between Tehran and Washington showed little progress.
Traders looked through a better-than-expected U.S. ISM services sector PMI print, which rose in May as businesses preemptively placed orders and rebuilt inventories in anticipation of shortages and higher prices because of the war.
Brent crude futures were 0.7% lower at $97.12 a barrel as trading resumed on Thursday after Lebanon and Israel agreed to implement a ceasefire, which is contingent on a complete cessation of fire from the Iran-aligned Hezbollah militia and the evacuation of all its operatives from the South Litani Sector. The two sides had agreed last month to a ceasefire but hostilities had continued.
The Republican-led U.S. House of Representatives approved a war powers resolution on Wednesday to block President Donald Trump from continuing the conflict against Iran. The measure is largely symbolic as it must still pass the Senate and would need a two-thirds majority in both chambers to override an almost certain presidential veto.
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"Geopolitics continue to drive volatility and as conflicting signals dampen hopes for a quick solution to the conflict," analysts from ING wrote in a research report.
Broadcom shares plunged more than 13% in extended trading after missing Wall Street expectations for second-quarter revenue on Wednesday, while its top executive left a previous 2027 sales forecast unchanged, in a rare sign that the AI chipmaker may be losing steam.
In the currency markets, the yen was down 0.1% at 159.945 yen per dollar after Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank must discuss the pros and cons of raising interest rates if inflationary risks outweigh downside risks to the economy, in remarks that point to a strong chance of a rate hike this month.
The U.S. dollar index, which measures the greenback's strength against a basket of six currencies, held steady at 99.45 after a three-day rally which took the currency to its strongest level since April 7.
The yield on the U.S. 10-year Treasury bond was down 0.4 basis point at 4.485%.
Gold rose 0.5% to $4,455.71, firmly within the trading channel it has sat in since the middle of last month.
Bitcoin fell 1.3% to $64,047.39, while ether rose 1.8% to $1,810.83.
(Reporting by Gregor Stuart HunterEditing by Shri Navaratnam)
Source: “AOL Money”
