Asian Shares Mostly Lower On Middle East Tensions

Asian stocks ended mostly lower on Wednesday, even as Hong Kong shares continued to surge on stimulus euphoria.

A cautious undertone prevailed following Tehran’s sharp but brief strike in reprisal for Israel’s attacks on Lebanon in recent days.

The dollar rose on safe-haven demand, sending gold prices lower in Asian trading.

Oil extended an overnight rally amid worries that Middle East tensions could escalate and potentially disrupt crude output from the region.

Markets in mainland China remained shut for Golden Week holidays.

Hong Kong’s Hang Seng index surged 6.20 percent to 22,443.73 as trading resumed after a holiday on Tuesday. Real estate and tech stocks outperformed sparked by Beijing’s recent slew of stimulus.

Japanese markets slumped due to apprehensions over BoJ policy outlook. The Nikkei average fell 2.18 percent to reach an over one-week closing low of 37,808.76, while the broader Topix index settled 1.44 percent lower at 2,651.96.

Technology stocks followed their U.S. peers lower after a nearly 3 percent drop on the Philadelphia SE Semiconductor index overnight.

Advantest lost 4.9 percent, Screen Holdings shed 3. 8 percent and Tokyo Electron gave up 3.7 percent.

AI-focused startup investor SoftBank Group declined 2.4 percent and Uniqlo parent firm Fast Retailing fell 4 percent.

South Korea’s Kospi average fell 1.22 percent to 2,561.69 as tensions escalated in the Middle East.

Data showed South Korea’s inflation cooled more than expected to a 43-month low in September, bolstering the case for a pivot to monetary easing by the central bank when it sets policy next week.

Samsung Electronics shares dropped below 60,000 won for the first time in 18 months before recouping most losses to close 0.3 percent lower at 61,300 won.

Korea Zinc shares rallied 3.6 percent after a South Korean court ruled that the company can buy back its own shares during a public tender offer by Young Poong and private equity firm MBK Partners.

Australian markets ended slightly lower despite strong gains in the energy sector, with Woodside Energy and Santos climbing 2-3 percent.

The benchmark S&P/ASX 200 slid 0.13 percent to 8,198.20 while the broader All Ordinaries index ended down 0.14 percent at 8,469.90.

Auric Mining plunged 12.7 percent after an announcement that its second gold milling campaign from the Jeffreys Find Gold Mine in Western Australia generated $23.5 million in sales.

Qantas fell 2.7 percent after the airline announced plans to buy a 25 percent stake in Virgin Australia from a U.S. private equity firm.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index closed 0.12 percent lower at 12,451.69.

U.S. stocks fell overnight after Iran launched missiles at Israel in retaliation for Israel’s campaign against Tehran’s Hezbollah ally in Lebanon.

Concerns about the economic impact of a strike by dockworkers at seaports across the U.S. East and Gulf Coasts and weak manufacturing data also weighed on markets.

The tech-heavy Nasdaq Composite lost 1.5 percent, the S&P 500 declined 0.9 percent and the Dow dropped 0.4 percent.

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