Asian stocks retreat after fresh US strikes on Iran, PCE in focus
Asian equity markets opened broadly lower on Thursday as investors absorbed news of fresh US air strikes inside Iran and the resulting overnight alert in Kuwait. Regional oil prices climbed while risk appetite eroded. Futures pointed to a cautious open for US trading hours.
According to Investing.com Americas data, Japan's Nikkei 225 opened down 1.4 percent, South Korea's Kospi fell 1.8 percent and Hong Kong's Hang Seng was off 1.2 percent. Mainland China's CSI 300 posted a more modest decline, while Australia's ASX 200 was supported by energy stocks. The region's six-session winning streak ended with the overnight geopolitical shock.
Latin American markets are exposed only indirectly: in Thursday pre-open trading, Sao Paulo Bovespa futures slipped 0.6 percent, while Mexican Bolsa futures saw limited selling thanks to strength in oil exporters. A Goldman Sachs note said the Brazilian real and Mexican peso could not escape the 'global risk-off' wave, but argued the structural Latin America story remains intact.
Investors are now focused on the April PCE inflation report and on Federal Reserve speakers' reaction to the Iran-oil shock. Analysts cited by Investing.com suggested that a PCE print above an annual 2.3 percent during Friday's US session could pressure Treasury yields again. This article is not investment advice.
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