Asian shares retreat in thin holiday trading after a tech-led rally on Wall St

Asian shares retreated on Friday in thin holiday trading, with markets in Greater China closed. U.S. futures declined as optimism over a U.S.-Iran deal was tempered by postponed nuclear talks. Investor sentiment was also impacted by expectations of interest rate hikes by central banks, including the Federal Reserve, to combat inflation. Tokyo's Nikkei 225 was little changed, while South Korea's Kospi and Australia's S&P/ASX 200 saw declines. On Thursday, Wall Street experienced a tech-led rally, with Intel surging after an announcement regarding chip manufacturing. Oil prices wavered following the U.S.-Iran agreement, with Brent crude settling higher.

Asian shares surged on Thursday, with Japan and South Korea's benchmarks reaching new records, following the signing of an initial agreement between the U.S. and Iran to end their war. This deal includes a 60-day negotiation period for a final agreement on Iran's nuclear program and waives U.S. sanctions, allowing Iran to freely sell its oil. The rally in Asia contrasted with a retreat on Wall Street the previous day, driven by speculation that the Federal Reserve might raise interest rates to combat inflation. Oil prices fell on the news, with Brent crude dropping to $77.72 per barrel. Major Asian markets like Tokyo and Seoul saw significant gains, while Hong Kong and Shanghai experienced slight declines.

Oil prices have declined following the United States and Iran signing an interim peace agreement, brokered by Pakistan's Prime Minister Shehbaz Sharif. Brent crude dropped as much as 1.6 percent on Thursday morning in Asia, returning to levels seen prior to the conflict. This development has fueled optimism for an end to disruptions in global energy supply chains. Consequently, key Asian stock markets, including Japan's Nikkei 225, South Korea's Kospi, and Taiwan's Taiex, opened higher. US stock futures also climbed, indicating a positive outlook for the US market. The memorandum of understanding between the US and Iran entered into force with immediate effect.

Asian shares showed mixed performance on Wednesday, with oil prices trading below $80 a barrel, influenced by optimism surrounding an interim agreement between the U.S. and Iran to end their war. Tokyo's Nikkei 225 rose due to a surge in Japanese exports, while South Korea's Kospi saw losses in technology stocks. Hong Kong and Shanghai also experienced declines. Oil prices stabilized after a sharp drop, driven by hopes of a potential end to the conflict and the reopening of the Strait of Hormuz, though challenges remain regarding the deal's specifics. U.S. futures edged higher ahead of the Federal Reserve's policy decision, with expectations that interest rates will remain unchanged despite pressure for cuts. Wall Street closed mixed, with the Nasdaq composite pulled down by declines in AI-related tech stocks.