Asia-Pacific markets traded lower on Thursday after the speaker of Iran’s parliament accused the US of violating the terms of a two-week ceasefire agreement.
On Wednesday, US President Donald Trump announced a “bilateral” ceasefire, more than a month after the start of the war with Iran.
“I agree with the suspension of the bombing and attacks on Iran for a period of two weeks,” Trump said in a post on Truth Social. “We have received a 10-point proposal from Iran and we believe it is a viable basis for negotiations.”
The ceasefire was conditional on Iran agreeing to reopen the Strait of Hormuz. Tehran has said it will halt “defensive” operations if attacks on the country stop, according to a statement by Iran’s foreign minister. Israel has also agreed to a ceasefire, the media reported.
Iranian Parliament Speaker Mohammed Bagher Ghalibaf then accused the US of violating the ceasefire agreement. The highlighted violations were the denial of the Islamic Republic’s right to enrich uranium and continued Israeli attacks on Lebanon, and the entry of a drone into Iranian airspace, he said.
South Korea’s Kospi fell 1.53%, while the small-cap Kosdaq fell 1.38%.
Japan’s Nikkei 225 fell 0.77%, while the Topix was lower by 0.78%. Japanese Finance Minister Satsuki Katayama on Thursday warned of the effect of volatility among markets on interest rates, Reuters reported. “An increase in interest rates carried over from other markets may materialize much faster than we expect,” she said.
Australia’s S&P/ASX 200 was unchanged.
China’s CSI 300 fell 0.64%, trailing heavy losses among other Asian markets. Hong Kong’s Hang Seng index fell by 0.30%, reports SEEbiz.
India’s Nifty 50 was lower by 0.3%. On Wednesday, the country’s central bank warned that the war with Iran had increased inflation concerns while pointing to risks to economic growth.
Oil futures continued to rise. West Texas Intermediate futures for May were trading 2.85% higher at $97.10 a barrel by 9:06 p.m. ET. The international reference price of Brent in June rose by 1.97% to 96.62 dollars per barrel.
