An electronic quotation board in Tokyo vividly displayed the Nikkei 225 stock prices on the Tokyo Stock Exchange on November 5, 2025, capturing the attention of market watchers.
The Asia-Pacific markets experienced a downturn on Thursday, pulling back from earlier gains. This shift came as oil prices surged in reaction to U.S. President Donald Trump’s national address concerning the ongoing conflict with Iran.
In a 19-minute address, President Trump emphasized that the United States had nearly achieved its objectives in Iran. He confidently stated, “we have all the cards” in this confrontation, and promised that Washington would impose severe measures on Iran over the ensuing two to three weeks.
Earlier on Wednesday, Trump claimed that Iran’s “New Regime President” had approached the U.S. with a request for a ceasefire, a statement that Tehran has firmly denied. He mentioned that the U.S. would only contemplate this offer if the Strait of Hormuz was “open, free, and clear,” as he communicated on Truth Social.
Previously, according to a report by the Wall Street Journal, Trump had indicated his willingness to conclude the U.S. military operations against Iran, even if the Strait of Hormuz remained obstructed.
Trump previously said he was willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remained closed, according to a report by the Wall Street Journal.
Oil prices spiked following the address, with U.S. crude futures rising 6% to $106.39 and global benchmark Brent gaining 6.7% to $107.97.
South Korea’s Kospi dropped 4.47% and settled at 5,234.05, leading Asian losses, and the small-cap Kosdaq was down 5.36% to 1,056.34. Both the indexes had opened more than 1% higher.
Japan’s Nikkei 225 fell 2.38% after Trump’s address, closing at 52,463.27, while the Topix fell 1.61% to 3,611.67.
Australia’s S&P/ASX 200 started the day in positive territory, but fell 1.06% to finish at 8,579.5.
Hong Kong’s Hang Seng index fell around 1% in its final hour of trade, while the CSI 300 index on mainland China lost 1.04% to end the day at 4,478.91.
Indian markets opened lower after Trump’s speech, with the Nifty 50 down 1.38% and the Sensex falling 1.47% as of 1:06 p.m. local time.
“Markets reacted negatively because, while Trump says it is nearly over, he is sending the third aircraft carrier and more troops to the region so it is hard to believe his words,” Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis, told CNBC.
U.S. stock futures fell, with S&P 500 futures and Nasdaq-100 futures down over 1%. Dow futures were down 439 points, or 0.94%.
Overnight in the U.S., the S&P 500 advanced 0.72%, and the Nasdaq Composite gained 1.16%. The Dow Jones Industrial Average added 0.48%.
—CNBC’s Lisa Kailai Han and Sean Conlon contributed to this report.
