Asian stocks fall, KOSPI pulls back after reaching record highs

Asian equities mostly declined as stalled US–Iran talks dampened risk appetite. The Wall Street Journal reported Iran fired on three ships in the Strait of Hormuz, escorting two into Iranian waters on Wednesday. Iranian media said the Revolutionary Guard moved the vessels to Iran, marking an escalation, though White House press secretary Karoline Leavitt said the seizures did not violate ceasefire terms.

Mohammad Bagher Ghalibaf, Iranian parliament speaker and chief negotiator, stated that reopening the strait would be “impossible” while the United States (US) and Israel persist with what he described as “flagrant” ceasefire violations, including the US naval blockade. Meanwhile, President Donald Trump said the current truce would remain in place indefinitely as Washington awaits a renewed peace proposal from Tehran.

At the time of writing, Japan’s Nikkei 225 is trading over 1% lower, near 58,900, while China’s SSE Composite Index is declining 0.79%, below 4,100. Moreover, South Korea’s KOSPI falls 0.61% to 6,380.

South Korea’s KOSPI retreats after hitting a record high of 6,557 on Thursday. The market had rallied on strong gains in technology stocks but lost momentum as higher energy prices and persistent Middle East uncertainty lifted Korea’s import bill.

Japanese equities decline as rising oil prices weigh on sentiment, underscoring Japan’s heavy reliance on Middle East crude imports. Traders expect the Bank of Japan (BoJ) to keep rates unchanged this month, though it may signal a potential shift toward policy normalization as early as June.

Hong Kong’s Hang Seng Index falls as investors take profits and adopt a cautious stance ahead of March inflation data due later in the day, with sentiment also influenced by a mixed global backdrop.