Asian Stocks Fall, Yen at Its Lowest Level Since July 2024 – Asia Market Wrap

Asian stocks fell as investors remained cautious about the chances of the Iran confrontation moving into the weekend. The Japanese Yen plummeted to its lowest level since July 2024, as the recent rise in oil prices fuelled inflation fears.

In afternoon trade, the benchmark of Asian shares fell as much as 1.2%. S&P 500 futures pared an early gain to 0.2%. The US measure fell 1.5% to its lowest level since November on Thursday. Brent was barely changed, trading slightly higher than $100 per barrel after rising 9.2% on Thursday.

Volatility lingered in financial markets as investors assessed the effectiveness of the US administration’s efforts to lower energy prices in the face of rising rhetoric from both Trump and Iran’s new supreme leader. Asian stocks recovered from their session lows, and S&P 500 futures jumped as much as 0.5% after the US announced a second temporary permission authorising purchases of Russian oil.

The Yen’s drop brought it closer to levels at which policymakers have previously intervened to support the currency. Nonetheless, experts perceive a high barrier for intervention, as the Iran issue and strong US data have driven the currency higher on fundamentals.

Treasuries were stable after sliding across the curve the previous session as inflation concerns intensified. The policy-sensitive US two-year rate rose nine basis points to 3.74% Thursday, while the 10-year yield gained 3 bps to 4.26%.