BANGKOK – Asian stocks moved lower Friday, while markets across Greater China remained shut for holidays.
U.S. stock futures also slipped as earlier optimism surrounding a potential U.S.-Iran agreement to halt their conflict faded. Sentiment weakened after crucial talks on restarting negotiations over Iran’s nuclear program and restoring oil shipments through the Strait of Hormuz were delayed.
Wall Street will remain closed Friday in observance of Juneteenth.
Markets have also come under pressure from growing expectations that major central banks, including the Federal Reserve, may continue raising interest rates in an effort to bring inflation under control.
Japan’s Nikkei 225 swung between modest gains and losses before ending little changed at 71,082.81. Government data showed consumer prices, excluding volatile fresh food, were flat, though analysts said inflation is still expected to accelerate in the months ahead despite rising fuel costs.
That inflation outlook helped prompt the Bank of Japan earlier this week to lift its key interest rate to 1%, the highest level in three decades, as policymakers continue to unwind years of ultra-low and negative-rate policies.
In South Korea, the Kospi lost 0.5% to 9,019.22 and the S&P/ASX 200 in Australia declined 1.1% to 8,818.40.
India’s Sensex lost 1%.
Markets in Hong Kong, Shanghai and Taiwan were closed for the Dragon Boat festival.
On Thursday, stocks rose on Wall Street, erasing most of their losses from a day earlier to notch weekly gains thanks to big advances for heavyweight technology companies. The decline on Wednesday was driven by anticipation that the Federal Reserve will likely raise interest rates this year in an effort to fight inflation.
The S&P 500 rose 1.1% to 7,500.58. The Dow Jones Industrial Average added 0.1% to 51,564.70 and the Nasdaq composite surged 1.9% to 26,517.93.
Technology stocks had some of the biggest gains and the most influence on the broader market’s rise. Intel surged 10.6% after U.S. President Donald Trump announced that the semiconductor giant will make chips for Apple in the U.S. Other big semiconductor companies gained ground. Nvidia rose 3% and Micron Technology jumped 8.7%.
On the losing end, SpaceX fell for the second straight day since its big debut on the U.S. stock market last week. The Elon Musk-led rocket maker and AI company was down 3.6% following a 4.9% loss Wednesday.
Oil prices wavered after the United States and Iran signed an agreement to end their war and reopen the Strait of Hormuz to oil tanker traffic. Brent crude, the international standard, spent most of the day lower before settling 0.4% higher at $79.85 per barrel. U.S. benchmark crude fell 0.2% to $75.85 per barrel.
Early Friday, Brent crude was down 0.5% at $79.34 per barrel. U.S. benchmark crude lost 0.5% to $75.37 per barrel.
Airlines had some of the bigger gains. American Airlines rose 3.7% and United Airlines rose 2.1%. Cruise line company Carnival jumped 3.2%.
Energy companies lost ground. Exxon Mobil fell 2.1% and Chevron fell 2.2%.
Prices for crude oil are still above roughly $70 per barrel from before the war, but are well below the $100-plus price from a few weeks ago.
Higher oil prices have been weighing on markets throughout the U.S. war with Iran. The current deal between the nations waives sanctions against Iran and allows it to sell its oil freely. It also opens up the Strait of Hormuz, where a fifth of the world’s oil supply is shipped.
Rising energy costs have been putting more pressure on already hot inflation. The average price of gasoline in the U.S. has dipped below $4 a gallon, but is still 25% higher than a year ago. Prices have been rising for a wide range of goods because of higher shipping costs.
The Federal Reserve kept is key interest rate unchanged this week but hotter inflation means it will likely raise rates by the end of the year. Lower interest rates make borrowing easier for businesses and households, spurring growth, but they also tend to stoke inflation.
In other dealings early Friday, the U.S. dollar rose to 161.39 Japanese yen from 161.38 yen. The euro slipped to $1.1441 from $1.1458.
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AP Business Writer Damian J. Troise contributed.
