New Delhi, May 28 (IANS) Asian markets traded lower on Thursday as renewed geopolitical tensions following fresh US military action against Iran weighed on investor sentiment, while oil prices rebounded 4 per cent after sharp losses in the previous session.

In the equity markets, Japan’s Nikkei 225 declined over 1 per cent to 63,905, while South Korea’s KOSPI declined nearly 5 per cent to 7,841.01.

Hong Kong’s Hang Seng index dropped 2.37 per cent or 600 points to 24,727, while China’s Shanghai Composite index slipped 0.90 per cent or 36.95 points to 4,056.78.

The selling pressure came after the US military said its forces carried out what it described as defensive operations against Iranian targets after intercepting drones near the Strait of Hormuz.

Reports claim that US Central Command forces shot down four Iranian attack drones and struck a ground control station in Bandar Abbas that was allegedly preparing to launch another drone.

Meanwhile, crude oil prices rebounded sharply in early trade after recording sharp losses on Wednesday. International benchmark Brent crude gained around 4.08 per cent to trade near $100 per barrel, while US benchmark West Texas Intermediate (WTI) crude rose more than 4 per cent to around $92.52 per barrel.

In the US, overnight, major US indices closed steady. The S&P 500 edged up 0.02 per cent to 7,520.36, while the Nasdaq gained 0.07 per cent to close at 26,674.73.

The developments come amid continuing uncertainty surrounding negotiations between Washington and Tehran over reopening the Strait of Hormuz, a critical route for global oil supplies.

Additionally, gold and silver traded lower in international markets on Thursday as a stronger US dollar and renewed geopolitical tensions following fresh US military action against Iran weighed on sentiment and heightened concerns that inflation could remain elevated for longer.

Moreover, domestic equity markets remained closed on Thursday as trading on the BSE and the National Stock Exchange (NSE) was suspended on account of Eid al-Adha.

–IANS

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