Stocks Drop, Oil and Silver Lead Commodity Losses – Asia Market Wrap

Oil dipped for the first time in six days after Trump hinted that he could hold off on invading Iran for now. Precious metals also fell from record highs.

Brent crude fell as much as 3.3% Thursday after Trump said he was satisfied by sources “on the other side” that Iran’s leadership would cease killing protesters. Despite this, Iran temporarily blocked airspace over its capital due to tensions with the US.

Silver fell as much as 7.3% after Trump decided not to impose fresh taxes on crucial resource imports. Gold, platinum, and palladium have also declined. Asia’s main stock index slid from a record high, while US equity-index futures dipped as the S&P 500 Index suffered its first back-to-back losses of the year.

While commodities fell from their highs, the primary story in stocks was investors pulling out of highly valued technology stocks. With important economic data from the US not changing expectations for a Fed rate cut until the middle of the year, traders are focussing on how the rotation will play out, particularly given Asian stocks have outperformed Wall Street.

Elsewhere in Asia, the South Korean Won fell after rising on Wednesday after US Treasury Secretary Bessent mentioned the currency’s significant falls. His words provided unusual verbal support for the Won, which is approaching its lowest point since 2009.