CANBERA (dpa-AFX) - Asian stock markets are mostly lower on Thursday, following the broadly negative cues from Wall Street overnight, as a fresh spike in oil prices, triggered by attacks on Middle Eastern energy facilities, revived inflation concerns. Report showing stronger-than-expected increase in US producer prices and the US Fed's higher inflation projections dampened bets for near-term interest rate cuts. Asian markets closed mostly higher on Wednesday.
The Middle East war continued to escalate as attacks on the UAE's energy infrastructure heightened fears of prolonged supply disruptions. Iran also launched missile strikes on a Qatari site housing the world's largest LNG facility after an Israeli attack on Iran's South Pars gas field.
Iran has reportedly refused to discuss any peace plans with the U.S., diminishing the expectations of an end to the war or even a ceasefire. Iran has taken this hardline stance to avenge Iran's martyrs. While Israel targeted Iran and Lebanon, Iran attacked its neighbors who host US military bases.
The Australian market is trading sharply lower on Thursday, reversing the gains in the previous two sessions, following the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling to near the 8,500 level, with weakness across most sectors led by mining and technology stocks. Energy stocks were the only bright spot amid spiking crude oil prices.
The benchmark S&P/ASX 200 Index is losing 131.90 points or 1.53 percent to 8,508.70, after hitting a low of 8,495.30 earlier. The broader All Ordinaries Index is down 145.40 points or 1.64 percent to 8,702.30. Australian stocks ended modestly higher on Wednesday.
Among major miners, Rio Tinto and Mineral Resources are declining almost 3 percent each, while Fortescue is down more than 2 percent and BHP Group is losing more than 3 percent.
Oil stocks are mostly higher. Santos is adding more than 3 percent, Beach energy is gaining more than 3 percent, Woodside Energy is surging almost 5 percent and Origin Energy is edging up 0.3 percent.
In the tech space, Afterpay owner Block is declining almost 4 percent, Xero is losing almost 2 percent, Appen is slipping more than 5 percent, WiseTech Global is sliding more than 4 percent and Zip is tumbling almost 7 percent.
Among the big four banks, Westpac is losing almost 1 percent, while Commonwealth Bank, ANZ Banking and National Australia Bank are edging down 0.1 to 0.3 percent each.
Among gold miners, Resolute Mining is sliding more than 7 percent, Northern Star Resources is declining more than 8 percent, Newmont is slipping more than 5 percent, Genesis Minerals is tumbling more than 10 percent and Evolution Mining is sliding almost 8 percent.
In economic news, Australia's seasonally adjusted unemployment rate rose to 4.3 percent in February 2026, exceeding both the 4.1percent forecast and levels seen in the previous two months. This marked the highest reading since November, as the number of unemployed increased by 35,000 to a three-month high of 659,100 from 624,200 in January.
Meanwhile, employment climbed 48,900 to a new peak of 14.75 million, easily beating estimates of a 20,300 increase and after an upwardly revised 26,000 gain in January.
The participation rate hit a four-month high of 66.9 percent, compared with estimates and December's 66.7 percent. The underemployment rate held steady at 5.9 percent.
In the currency market, the Aussie dollar is trading at $0.705 on Thursday.
The Japanese market is sharply lower on Thursday, reversing the gains in the previous two sessions, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is tumbling 2.5 percent to below the 53,900 level, with weakness across all sectors led by index heavyweights and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 53,875.94, down 1,363.46 points or 2.47 percent, after hitting a low of 53,622.49 earlier. Japanese shares ended sharply higher on Wednesday.
Market heavyweight SoftBank Group is losing almost 4 percent and Uniqlo operator Fast Retailing is declining more than 3 percent. Among automakers, Toyota is losing almost 2 percent and Honda is declining almost 3 percent.
In the tech space, Advantest is tumbling almost 5 percent, Screen Holdings is declining almost 3 percent and Tokyo Electron is losing more than 2 percent.
In the banking sector, Mitsubishi UFJ Financial is down almost 1 percent, Sumitomo Mitsui Financial is losing more than 1 percent and Mizuho Financial is declining almost 2 percent.
Among the major exporters, Mitsubishi Electric is losing more than 2 percent, Sony is gaining more than 1 percent, Canon is edging down 0.3 percent and Panasonic is declining almost 2 percent.
Among other major losers, Tokyo Electric Power is tumbling more than 8 percent and Sumitomo Metal Mining is slipping more than 7 percent, while Resonac Holdings, Taiheiyo Cement and JGC Holdings are sliding more than 6 percent each. Dowa Holdings and Mitsui Kinzoku are declining almost 6 percent each, while Shimizu, Yokohama Rubber, JTEKT and Sumco are losing more than 5 percent each. NGK Insulators, Mitsubishi Chemical, Asahi Kasei and Mitsubishi Materials are falling almost 5 percent each.
Conversely, BayCurrent is surging more than 5 percent and Mitsui O.S.K. Lines is advancing almost 3 percent.
In economic news, the Bank of Japan will wrap up its monetary policy meeting on Thursday and then announce its decision on interest rates. The BoJ is widely expected to keep its benchmark lending rate unchanged at 0.75 percent.
In the currency market, the U.S. dollar is trading in the higher 159 yen-range on Thursday.
Elsewhere in Asia, New Zealand and South Korea are down 1.8 and 2.1 percent, respectively, China, Hong Kong and Taiwan are lower by between 1.0 and 1.5 percent each, while Singapore is down 0.4 percent. Malaysia is bucking the trend and is up 0.3 percent. Indonesia remains closed for the Saka New Year.
On Wall Street, stocks moved sharply lower over the course of the trading day on Wednesday, largely offsetting the upward move seen over the two previous sessions. The major averages all showed significant moves to the downside, with the Dow and the S&P 500 dropping to nearly four-month lows.
The major averages ended the day just off their lows of the session. The Dow plunged 768.11 points or 1.6 percent to 46,225.15, the Nasdaq tumbled 327.11 points or 1.5 percent to 22,152.42 and the S&P 500 slumped 91.39 points or 1.4 percent to 6,624.70.
The major European markets also moved to the downside on the day. While the French CAC 40 Index edged down by 0.1 percent, the U.K.'s FTSE 100 Index slid by 0.9 percent and the German DAX Index slumped by 1.0 percent.
Crude oil prices ticked lower on Wednesday after Iraq said it has resumed oil production, bypassing the Strait of Hormuz by going through Turkey. West Texas Intermediate crude for April delivery eased $0.18 or 0.19 percent at $96.39 per barrel.
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