[MARKET ANALYSIS] Asia-Pac stocks decline as geopolitical tensions flare-up on US-Iran tit-for-tat

APAC Stocks: Negative

• Asia-Pac stocks declined amid a flare-up of geopolitical tensions in the Middle East after the US conducted another defensive operation in which it attacked a launch site and shot down drones after they posed a threat to US forces and commercial maritime in the Strait of Hormuz, while the IRGC said it responded by attacking the US base where the US aggression originated from.

ASX 200: -1.5%

• Retreated amid the geopolitical escalation and with sentiment not helped by mixed data in which capex topped estimates, but household spending disappointed.

Nikkei 225: -1.3%

• Price action was choppy but ultimately retreated amid the rebound in oil prices and increased geopolitical tension between the US and Iran.

Hang Seng & Shanghai Comp: Hang Seng -2.1% / Shanghai Comp -0.1%

• Chinese markets are somewhat varied, with the Hong Kong benchmark underperforming following recent earnings and mixed tech fortunes, while the mainland is rangebound and has largely ignored the geopolitical tensions.

US Equity Futures: Lower

• Mildly weakened amid the US-Iran tit-for-tat limited attacks.

European Equity Futures -1.2%

• Indicate a lower cash market open with Euro Stoxx 50 futures down 1.2% after the cash market closed with gains of 0.1% on Wednesday.