As the Iran war continues to destabilize the region, global capital found new avenues for accumulation today, with Asian stock markets largely advancing while oil prices saw shifts. South Korea’s Kospi gained 2.5% to 7,475.94, recovering some losses from earlier in the week. Shares in memory chipmaker SK Hynix, set for its Nasdaq debut today, fell 0.3% in Seoul, a minor setback for investors in the tech sector.
Tokyo’s Nikkei 225 rose 1.2% to 68,557.73, indicating significant gains for Japanese capital. SoftBank Group, a key investor in OpenAI, jumped 10.7%, while chip equipment maker Tokyo Electron added 2.7%. Hong Kong’s Hang Seng traded 0.5% higher at 24,156.29, but the Shanghai Composite index erased earlier gains to fall 1% to 3,996.16. Australia’s S&P/ASX 200 gained 0.5% to 8,806.00, and India’s Sensex added 1%, demonstrating a broad upward trend for investors across the continent.
War's Market Dividends
Oil prices yo-yoed again today as global oil supplies remained under pressure. This pressure stems from a limited number of vessels able to cross the Strait of Hormuz, a crucial waterway for energy transport. Brent crude, the international standard, fell 0.8% to $75.66 per barrel; it was trading near $72 a barrel before the war began in late February. Benchmark U.S. crude shed 0.9% to $71.47 a barrel, reflecting the ongoing volatility that allows speculators to profit from price swings.
Tensions between Iran and the U.S. escalated this week after President Donald Trump declared the Iran war ceasefire agreement “over.” The United States and Iran have since exchanged attacks, further entrenching the conflict that serves as a backdrop for these market maneuvers. This state-sanctioned aggression directly impacts global supply chains and the cost of living for working people, while capital adjusts its portfolios.
The State Directs Capital
In other dealings early today, the U.S. dollar fell to 161.70 Japanese yen from 162.37 yen. The euro was trading at $1.1439, up from $1.1430. The yen gained against the dollar after Finance Minister Satsuki Katayama told a parliamentary committee that the government plans to encourage big pension funds to invest more in domestic, yen-denominated assets. This move represents a direct intervention by the state to channel collective wealth, accumulated through workers' deferred wages, into national capital markets, reinforcing existing power structures.