BEIJING (dpa-AFX) - Asian stocks gave up early gains to end mostly lower on Thursday after two consecutive days of advances on hopes for a de-escalation in the U.S.-Iran conflict.
Uncertainty lingered on the status of Middle East peace talks as Iran dismissed an American plan to pause the war, insisting that it will only occur on Tehran's own terms and timeline.
As the war drags on, governments across Asia have shifted into emergency footing. South Korea has set up an emergency economic task force to urgently prepare for adverse scenarios.
Japan said it is reviewing its supply chain for petroleum-related products. The Philippines has declared a national emergency, citing an 'imminent danger of a critically low energy supply.'
Gold fell over 1 percent to $4,457 an ounce in Asian trade as the dollar remained near recent highs on inflation fears and hawkish Fed bets.
Oil prices jumped more than 2 percent after reports that the U.S. military is deploying thousands of Marines and several more battleships to the Middle East.
China's Shanghai Composite index fell 1.09 percent to 3,889.08 after China Life Insurance delivered mixed financials results. Shares of the company slumped 4.4 percent.
Hong Kong's Hang Seng index slumped 1.89 percent to 24,856.43 amid skepticism over U.S. President Trump's efforts to bring an end to the war with Iran.
Japanese markets reversed course to end modestly lower due to lingering inflation and interest-rate concerns. The Nikkei average dipped 0.27 percent to 53,603.65 while the broader Topix index settled 0.22 percent lower at 3,642.80.
The yen hovered near its lowest level this year as inflation fears and hawkish Fed bets underpinned the dollar.
Seoul stocks tumbled, dragged down by semiconductor-related stocks after Google unveiled a technology called TurboQuant that can speed up artificial intelligence models and lower their memory requirements.
The Kospi index slumped 3.22 percent to 5,460.46 while Samsung Electronics lost 4.7 percent and peer SK Hynix shed 6.2 percent on concerns over weaker demand.
Australian markets fluctuated before finishing marginally lower after the Reserve Bank warned that a global supply shock from a prolonged Middle East war could lift inflation and long-term expectations.
Australia's consumer inflation eased marginally in February 2026, but analysts said headline inflation could approach 5 percent next month due to rising energy costs.
The benchmark S&P/ASX 200 slid 0.10 percent to 8,525.70 after two sessions of gains. The broader All Ordinaries index closed 0.21 percent lower at 8,726.50.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up by 0.37 percent to 12,976.99, extending gains from the previous session.
U.S. stocks closed higher overnight as oil prices fell and bond yields eased amid expectations that a ceasefire might be reached in the Middle East.
Diplomacy signals lifted sentiment after reports suggested that the U.S. has sent Iran a 15-point plan to end the war in the Middle East.
Tehran also put forward a five-point counterproposal and said the war will end when it decides and on its terms.
White House Spokesperson Karoline Leavitt stated that peace talks were ongoing, adding that the President's preference has always been peace but if Iran fails to accept the reality, President Trump will ensure they are hit harder than they have ever been hit before.
The tech-heavy Nasdaq Composite advanced 0.8 percent, the Dow gained 0.7 percent and the S&P 500 rose half a percent.
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