Asian Markets Track Wall Street Lower

(RTTNews) - Asian stock markets are trading mostly lower on Friday, following the broadly negative cues from Wall Street overnight, amid the raging war in the Middle East as Iran toughens its stand. The resultant spike in energy stocks amid surging in crude oil prices is helping limit the losses in the markets in the region. Asian markets ended mostly lower on Thursday.

The new leadership in Iran refused to bow down to U.S. pressure and instead vowed revenge, threatening U.S. allies, and resolving to ramp up attacks. Iran's new Supreme Leader Mojtaba Khamenei vowed to avenge those killed in Iran's war against the U.S.-Israeli joint forces and also said the Strait of Hormuz must remain closed as a "tool to pressure the enemy."

Khamenei also warned its neighboring Arab nations of severe attacks if they host U.S. military forces and demanded closure of the bases.

Iran has targeted oil fields and refineries in Gulf Arab nations and effectively stopped cargo traffic through the narrow Strait of Hormuz in a bid to exert pressure on the United States and Israel to end the war. Iran also continued to target commercial vessels of various nations and carried its missile and drone strikes on Arab neighbors.

Energy Secretary Chris Wright told CNBC in an interview that the U.S. Navy is "not ready" to escort oil tankers through the strait. There are reports of three more foreign ships struck in the Persian Gulf overnight, adding to concerns about transit through the strategically vital Strait of Hormuz.

The Middle East war that began following the U.S.-Israeli combined attacks on Iran on February 28 entered day number 14 today without any sign of a de-escalation.

The Australian stock market is trading modestly higher on Friday after opening in the red, reversing some of the sharp losses in the previous session, despite the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving up to near the 8,650 level, with gains in financial and energy stocks partially offset by weakness in mining and technology stocks.

The benchmark S&P/ASX 200 Index is losing 13.60 points or 0.16 percent to 8,642.60, after hitting a low of 8,585.70 earlier. The broader All Ordinaries Index is up 12.20 points or 0.14 percent to 8,863.60. Australian stocks closed sharply lower on Thursday.

Among major miners, Mineral Resources is edging up 0.3 percent, while Rio Tinto is gaining more than 3 percent and Fortescue is advancing more than 5 percent. BHP Group is losing almost 2 percent

Oil stocks are mostly higher. Beach energy and Woodside Energy are gaining 1.5 percent each, while Santos is adding almost 2 percent. Origin Energy is flat. Among tech stocks, Afterpay-owner Block is declining more than 4 percent, WiseTech Global is slipping almost 2 percent, Appen is edging down 0.2 percent and Zip is down almost 3 percent, while Xero is gaining almost 2 percent.

Among the big four banks, National Australia Bank, Commonwealth Bank, ANZ Banking and Westpac are all gaining more than 1 percent each. Gold miners are weak. Evolution Mining is losing more than 1 percent and Genesis Minerals is declining more than 5 percent, while Resolute Mining and Newmont are gaining more than 1 percent each. Northern Star Resources is tumbling almost 17 percent after is warns on production guidance citing weaker milling at the Kalgoorlie Super Pit and reduced output at Jundee.

In other news, shares in Syrah Resources are plunging more than 28 percent after the U.S. International Trade Commission rejected tariffs on Chinese graphite anode materials. However, the company said it remains committed to ramping up its Vidalia facility in Louisiana.

Shares in Electro Optic Systems are surging more than 14 percent after the counter-drone technology company secured two new unconditional orders for counter-drone systems worth a total of US$45 million, and flagged growing interest out of the Middle East following the conflict in the region.

In the currency market, the Aussie dollar is trading at $0.708 on Friday.

The Japanese market is trading sharply lower on Friday, extending the losses in the previous session, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling below the 53,800 level, with weakness across most sectors led by index heavyweights, automakers and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 53,786.40, down 666.56 points or 1.28 percent, after hitting a low of 53,286.69 earlier. Japanese shares ended significantly lower on Thursday.

Market heavyweight SoftBank Group is losing more than 4 percent and Uniqlo operator Fast Retailing is down more than 1 percent. Among automakers, Toyota is losing almost 2 percent and Honda is tumbling more than 6 percent.

In the tech space, Advantest is down more than 3 percent, while Screen Holdings and Tokyo Electron are losing almost 3 percent each.

In the banking sector, Sumitomo Mitsui Financial is losing more than 1 percent, Mitsubishi UFJ Financial is edging down 0.4 percent and Mizuho Financial is declining more than 2 percent.

Among the major exporters, Canon and Panasonic are losing almost 1 percent each, while Mitsubishi Electric is declining more than 2 percent. Sony is edging up 0.2 percent.

Among other major losers, Honda Motor is tumbling almost 7 percent and Ebara is sliding almost 6 percent, while BayCurrent, Sumco, IHI and Nissan Motor are declining almost 5 percent each. Renesas Electronics and Kawasaki Heavy Industries are slipping more than 4 percent each, while Yaskawa Electric, Disco, Mazda Motor and Taiyo Yuden are losing more than 3 percent each.

Conversely, Marubeni is jumping more than 5 percent, Sumitomo Chemical is surging almost 4 percent and Japan Steel Works is advancing almost 4 percent, while CyberAgent and Nintendo are gaining almost 3 percent each.

In the currency market, the U.S. dollar is trading in the lower 159 yen-range on Friday.

Elsewhere in Asia, South Korea is down 1.2 percent, while New Zealand, China, Hong Kong, Malaysia, Indonesia and Taiwan are lower by between 0.1 and 0.9 percent each. Singapore is bucking the trend and is up 0.1 percent.

On Wall Street, stocks moved sharply lower over the course of the trading session on Thursday after closing little changed for two straight days. With the steep losses on the day, the major averages dropped to their lowest closing level in well over three months.

The major averages finished the day just off their lows of the session. The Dow plunged 739.42 points or 1.6 percent to 46,677.85, the Nasdaq tumbled 404.16 points or 1.8 percent to 22,311.98 and the S&P 500 slumped 103.18 points or 1.5 percent to 6,672.62.

The major European markets also moved to the downside on the day. While the French CAC 40 Index declined by 0.7 percent, the German DAX Index fell by 0.5 percent and the U.K.'s FTSE 100 Index dipped by 0.2 percent.

Crude oil prices surged on Thursday after the new leadership in Iran refused to bow down to U.S. pressure in the raging Middle East war and instead vowed revenge. West Texas Intermediate crude for April delivery was up $7.45 or 8.54 percent at $94.70 per barrel.