Asia-Pacific Markets Reverse Gains Amid Trump's Iran War Address

Asia-Pacific markets erased gains on Thursday as investors digested U.S. President Donald Trump's speech on the Iran war. Trump stated that the U.S. objectives in Iran were nearly achieved and warned that Washington would strike Iran 'very hard' in the coming weeks. His remarks, delivered at 9 p.m. Eastern Time (9 a.m. in Singapore and Hong Kong), triggered a sell-off in regional indices. Japan's Nikkei 225 fell 1.4%, the Topix dropped 0.94%, and South Korea's KOSPI declined 2.82%. Australia's S&P/ASX 200, which had started the day in positive territory, ended down 0.48%. Hong Kong's Hang Seng index opened 0.5% lower, while China's CSI 300 remained flat. Trump also claimed that Iran's 'New Regime President' had sought a ceasefire, a claim Tehran has denied. The U.S. leader emphasized that any ceasefire would be considered only once the Strait of Hormuz was 'open, free, and clear.' Earlier reports suggested Trump had previously been willing to end the military campaign even with the strait closed. U.S. stock futures showed minimal movement, with S&P 500 and Nasdaq-100 futures slightly above the flatline and Dow futures up 13 points, or 0.03%. Overnight, the S&P 500 rose 0.72%, the Nasdaq Composite gained 1.16%, and the Dow Jones Industrial Average added 0.48%. The market reaction highlights the sensitivity of energy and defense sectors to geopolitical developments, with crude oil and the VIX volatility index likely to be key indicators of investor sentiment in the coming days.