Oil prices tumbled on Thursday after US President Donald Trump appeared to ease threats of immediate military action against Iran, while Asian markets posted a mixed performance following modest losses on Wall Street.
Crude dropped roughly 3 percent after Trump said Wednesday he would “watch it and see” regarding potential intervention in Iran, stepping back from earlier warnings over the crackdown on protesters. In recent days, crude had surged amid fears that US involvement could disrupt global oil supplies.
Precious metals also reacted sharply. Silver plunged nearly 7 percent from a record high above $93.75 an ounce after Trump refrained from imposing tariffs on critical minerals, while gold experienced modest declines.
“The swings in commodities highlight the extreme volatility driven by President Trump’s unpredictable policy style,” said Garfield Reynolds, Bloomberg’s Markets Live Asia Team Leader. “However, the recent declines are still too small to derail this year’s strong rallies, and investors are likely to return to commodities given their historical bounce-backs after corrections.”
In equities, Tokyo’s Nikkei 225 closed down 0.4 percent, retreating after gains fueled by speculation that Prime Minister Sanae Takaichi would call a snap election. Takaichi’s party and coalition partner confirmed plans to dissolve parliament next week, seen as a move to advance an ambitious policy agenda.
Other Asian markets were mixed: Sydney, Jakarta, Bangkok, Manila, and Singapore posted gains, while Wellington, Mumbai, and Kuala Lumpur closed lower. Shanghai and Hong Kong were down 0.3 percent, with Taipei ending 0.4 percent lower.
After market close, Taiwanese chipmaker TSMC reported a 35 percent year-on-year jump in fourth-quarter net profit, surpassing forecasts amid booming AI demand.
London opened slightly higher, rising 0.1 percent, following official data showing stronger-than-expected economic growth in Britain for November.
In currency markets, attention remained on South Korea as the won slid toward its weakest level in 16 years. US Treasury Secretary Scott Bessent called the depreciation “not in line with Korea’s strong economic fundamentals,” prompting a brief 1 percent rebound in the won.
Analysts noted continued investor caution over potential US interventions in Iran and Greenland, and Trump’s challenges to Federal Reserve autonomy amid ongoing investigations.
Key Figures (around 0800 GMT Thursday):
- Tokyo Nikkei 225: Down 0.4% at 54,110.50
- Hong Kong Hang Seng: Down 0.3% at 26,924.24
- Shanghai Composite: Down 0.3% at 4,112.60
- WTI Crude: Down 3.4% at $59.94/bbl
- Brent Crude: Down 3.4% at $64.23/bbl
- Euro/USD: $1.1630
- Pound/USD: $1.3433
- Dollar/Yen: 158.56
- Dow Jones: Down 0.1% at 49,149.63
- FTSE 100: Up 0.1% at 10,197.73
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