Asian equity markets face selling pressure on Friday as risks over the sustainability of the month-long fragile ceasefire between the United States (US) and Iran have increased, following renewed clashes between both nations around the Strait of Hormuz.
During the press time, Nikkei 225 is down 0.66% to near 62,440, Shanghai slumps over 0.4% at around 4,160, and Hang Seng plunges 1.3% to near 26,280.
On Thursday, three US Navy destroyers reportedly intercepted Iranian strikes while transiting the strategic waterway and carried out retaliatory attacks, which prompted fears of renewed tensions between both nations.
However, US President Donald Trump confirmed that a ceasefire with Iran is still intact, while warning that attacks would be obvious if the temporary truce were over, CNN reported.
Meanwhile, Iran is still reviewing the US one-page memorandum of understanding (MoU), which is a 14-point peace plan, and has not delivered any breakthrough response. The one-page MoU restricts Tehran from pursuing its nuclear ambitions for a longer period and calls for the immediate reopening of the Hormuz.
Going forward, investors will focus on the US Nonfarm Payrolls (NFP) data for April, which will be released at 12:30 GMT. Investors will closely monitor the data to get fresh cues on the US interest rate outlook.
Comments
Log in or sign up to join the conversation.