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08/05/26
27
Asian Stocks Fall as Iran Ceasefire Wavers
Asian equity markets moved lower on Friday as investors grew more cautious over the durability of the ceasefire between the United States and Iran. Renewed clashes near the Strait of Hormuz revived concerns that tensions could escalate again, unsettling sentiment across the region.
Japan’s Nikkei 225 fell 0.66% to around 62,440, while Shanghai stocks dropped more than 0.4% to roughly 4,160. Hong Kong’s Hang Seng index was hit harder, sliding 1.3% to near 26,280. The declines reflected a broader preference for caution as traders assessed geopolitical risks in a strategically important shipping route.
Reports that three US Navy destroyers intercepted Iranian strikes while passing through the area added to unease on Thursday. The vessels were also said to have launched retaliatory attacks, increasing fears that the brief calm between the two countries could give way to a new phase of confrontation.
Despite the fresh tensions, President Donald Trump said the ceasefire with Iran remains in place. He also suggested that any breakdown in the temporary truce would be evident, according to reports. Even so, markets remain wary, as the situation around the Gulf continues to shift quickly and without a clear resolution.
Iran is still weighing a US memorandum of understanding that forms part of a broader 14-point peace proposal. The plan reportedly limits Tehran’s nuclear program over a longer period and calls for the immediate reopening of the Strait of Hormuz. So far, Tehran has not given a decisive response, leaving the diplomatic outlook uncertain.
Later in the day, investors will turn their attention to the US nonfarm payrolls report for April, due at 12:30 GMT. The data will be closely watched for signals on the strength of the US labor market and for any clues about the US interest rate outlook.
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