FX.co ★ Asian Shares Mostly Lower On Middle East Tensions

Asian stocks mostly ended lower on Wednesday, despite a continued surge in Hong Kong shares driven by stimulus-driven optimism.

A prevailing sense of caution followed Tehran’s sharp but brief strike in retaliation for Israel's recent attacks on Lebanon.

The dollar appreciated due to increased safe-haven demand, which in turn pushed gold prices lower in Asian trading.

Oil extended its overnight rally amid growing concerns that escalating Middle Eastern tensions could disrupt crude output from the region.

Mainland China markets remained closed for Golden Week holidays.

Hong Kong’s Hang Seng Index soared 6.20% to 22,443.73 as trading resumed after a holiday on Tuesday. Real estate and tech stocks outperformed, sparked by Beijing’s recent wave of stimulus measures.

Japanese markets declined due to apprehensions over the Bank of Japan’s policy outlook. The Nikkei average fell 2.18% to reach a one-week low of 37,808.76, while the broader Topix index decreased 1.44% to 2,651.96.

Technology stocks followed their U.S. counterparts lower, influenced by a nearly 3% drop in the Philadelphia SE Semiconductor index overnight.

Advantest fell 4.9%, Screen Holdings lost 3.8%, and Tokyo Electron declined 3.7%.

AI-focused startup investor SoftBank Group dropped 2.4%, and Uniqlo parent company Fast Retailing fell 4%.

South Korea’s Kospi average was down 1.22% to 2,561.69 due to escalating Middle Eastern tensions.

Data indicated that South Korea's inflation cooled more than expected to a 43-month low in September, strengthening the case for potential monetary easing by the central bank in its upcoming policy meeting.

Samsung Electronics saw its shares drop below 60,000 won for the first time in 18 months, although they recovered most losses to close 0.3% lower at 61,300 won.

Korea Zinc shares surged 3.6% after a South Korean court ruled that the company could repurchase 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, where Woodside Energy and Santos rose between 2-3%.

The benchmark S&P/ASX 200 declined 0.13% to 8,198.20, while the broader All Ordinaries index fell 0.14% to 8,469.90.

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

Qantas dropped 2.7% following its announcement of plans to acquire a 25% stake in Virgin Australia from a U.S. private equity firm.

In neighboring New Zealand, the benchmark S&P/NZX-50 index ended 0.12% 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, coupled with weak manufacturing data, also weighed heavily on markets.

The tech-heavy Nasdaq Composite dropped 1.5%, the S&P 500 fell 0.9%, and the Dow Jones Industrial Average decreased 0.4%.