Key facts
- Asian stocks fell due to renewed US-Iran clashes.
- Oil prices slipped from recent highs after Israel and Lebanon agreed to a ceasefire.
- Corn, soybeans, and wheat faced pressure from current US weather conditions.
- The soy complex saw losses following a drop in crude oil prices.
- Colombia booked 115,000 metric tons of corn in a flash sale.
Asian stocks fell on Thursday as renewed fighting between the U.S. and Iran rattled investors, although oil prices slipped from recent highs after Israel and Lebanon agreed to a ceasefire. MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.5%, while S&P 500 e-mini futures slipped 0.5%. Korean shares were down as much as 2.6% and Japan's Nikkei 225 slumped 1.9%. Analysts noted a shift to risk-off mode. Wall Street stocks also dropped overnight, with the S&P 500 falling 0.7% and oil prices rising around 2% as talks between Tehran and Washington showed little progress and hostilities erupted anew. Traders looked past better-than-expected U.S. ISM services sector PMI data. Brent crude futures were 1.3% lower at $96.59 a barrel as trading resumed on Thursday after Lebanon and Israel agreed to implement a ceasefire, contingent on a complete cessation of fire from the Iran-aligned Hezbollah militia. The U.S. House of Representatives approved a war powers resolution to block President Donald Trump from continuing the conflict against Iran, though it is largely symbolic. Broadcom shares plunged more than 13% in extended trading after missing revenue expectations. In currency markets, the yen strengthened 0.1% to 159.88 per dollar. Bank of Japan Governor Kazuo Ueda signalled a strong chance of a rate hike this month. The Aussie dollar nudged 0.1% higher after Australia's trade balance swung back into surplus. The U.S. dollar index held steady at 99.44. The yield on the U.S. 10-year Treasury bond was down 1.4 basis points at 4.473%. Gold rose 0.9% to $4,473.61 per ounce. Bitcoin tumbled 4% to a four-month low of $62,321.87, while ether was down 1.9% at $1,744.70, undercut by a stronger U.S. dollar, rising yields, and cautious risk sentiment. Heavy losses were posted in the agricultural complex due to a general 'risk off' approach to the market. Uncertainty surrounding developments between the United States and Iran caused an exit of managed money from markets. While the White House stated a ceasefire, both sides launched overnight attacks. The Israel-Lebanon peace deal eased geopolitical tensions for now. Concerns over the global economy also negatively impacted trade. Corn, soybeans, and wheat faced additional pressure from current U.S. weather conditions, with crops highly rated despite heat and limited precipitation. Hesitancy to extend long positions was noted until ratings fall. The chances of rain over the next week for the Western Corn Belt further limited buying interest. The greatest losses were in the soy complex, following a 3% drop in crude oil in early trade. Disappointing soy meal sales added to the complex's negativity. Colombia booked 115,000 metric tons of corn in a flash sale this morning.