Asian equity markets retreated on Thursday, reversing the momentum of a previous day’s surge driven by artificial intelligence stocks.
The retreat reflects a broader rotation as traders digest renewed geopolitical friction in the Middle East alongside valuation concerns in the technology sector.
Oil prices traded in a tight range, with Brent crude holding steady as markets assessed prospects for an Iran peace deal.
The stability in energy markets suggests investors are pricing in a potential de-escalation, contrasting with earlier volatility driven by shipping risks in the Strait of Hormuz.
This shift marks a departure from the recent focus on supply disruption fears.
While Iran has previously warned oil tankers to use approved routes or face forceful response, the current market calm indicates a tentative belief that diplomatic channels may prevail.