Asia-Pacific Stocks Mostly Under Pressure Today; Japan, South Korea Stocks Hover at Highs; Market Eyes Latest U.S.-Iran Conflict

TradingKey - Asia-Pacific stock markets were mostly under pressure today, affected by the escalation of the US-Iran conflict, which caused some tech stocks to retreat; however, Japanese and South Korean stocks continued to hover at high levels.

The Nikkei 225 Index opened lower and trended down in the morning session before recovering amid volatility in the afternoon, closing down 0.19% at 62,713.65 points. It reached an intraday high of 62,724.36 points and remained hovering at relatively high levels.

Among heavyweight stocks, Keyence rose 6.07% and Kioxia gained 2.49%; on the downside, SoftBank Group fell 4.56% and Toyota Motor dropped 2.18%.

Data released on Friday showed that Japan's real wages grew 1% year-on-year in March, marking the third consecutive month of growth, which provides further support for the Bank of Japan to raise interest rates at its June meeting. The data highlights the steady growth in Japanese wages; in a previous Reuters poll of economists, nearly two-thirds expected the BOJ to raise interest rates to 1.0% by the end of June.

South Korea's KOSPI Index opened lower but trended higher in the morning, closing up 0.11% at 7,498 points, with an intraday high of 7,511.01 points, similarly hovering at high levels.

Among heavyweight stocks, Hyundai Motor surged 7.17% and SK Hynix rose 1.93%; among decliners, LG Energy Solution fell 1.35% and Samsung Electronics dropped 1.1%.

On the news front, Samsung Electronics announced on its official website that in response to the rapidly changing market environment and after careful consideration, the company has decided to stop selling all home appliance products, including televisions and monitors, in the Mainland China market. For users who have already purchased Samsung home appliances, the company will continue to provide standardized after-sales services in strict accordance with the Law on the Protection of Consumer Rights and Interests and national "Three Guarantees" regulations to ensure legal rights are protected. Regarding its mobile business, Samsung Electronics stated that mobile phone products will continue to be sold normally.

Additionally, Citi raised its target for South Korea's KOSPI Index from 7,000 to 8,500 points on Thursday, reflecting strong earnings from semiconductor manufacturers, robust fiscal stimulus measures, and the impact of government policies aimed at boosting corporate value. Popular stocks include Samsung Electronics, Eugene Technology, Amore Pacific, APR, Hyosung Heavy, and NCSoft.

Taiwan's TAIEX Index closed down 0.79% at 41,603.94 points. Among heavyweight stocks, MediaTek rose 6.14%; on the downside, ASE Technology Holding fell 4.44%, Hon Hai dropped 1.38%, and TSMC shed 0.87%.

Moody's Analytics stated in a report that the AI boom could stall due to rising costs, thereby hitting export growth in the Asia-Pacific region. The report noted that the rapid development of AI has been a key factor in offsetting the drag on Asia-Pacific exports from US tariff hikes. However, overvalued stocks, rising prices, and localized hardware shortages all suggest that the AI boom is "increasingly likely to take a pause." Furthermore, the conflict in the Middle East has heightened geopolitical and trade risks for Asia-Pacific economies. Moody's Analytics further pointed out: "The combination of rising inflation, trade and supply chain disruptions, and overvalued assets creates the risk of policy errors in the fiscal and monetary policies of the Asia-Pacific region."