SEOUL, March 12 (AJP) — Asian stock markets traded mostly lower Thursday as investors weighed volatile oil prices and the risk of prolonged shipping disruptions in the Strait of Hormuz despite a coordinated release of strategic crude reserves by major consuming nations.
The International Energy Agency (IEA) said Wednesday that its 32 member countries agreed to release 400 million barrels of strategic oil reserves, the largest coordinated drawdown in the agency’s history, to stabilize global energy markets rattled by the war between the United States and Iran.
The planned release is more than double the 182.7 million barrels released in two rounds after Russia’s invasion of Ukraine in 2022. South Korea and Japan are also expected to contribute shares from their emergency stockpiles.
Still, investor sentiment remained fragile as Iranian attacks on commercial vessels near the Strait of Hormuz and continued threats to shipping routes raised fears of supply disruptions along one of the world’s most critical oil corridors.
In Tokyo, the Nikkei 225 fell 1.06 percent to 54,444.13 in morning trading.
Hong Kong’s Hang Seng Index slipped 0.39 percent to 25,798.95, while China’s Shanghai Composite Index edged down 0.17 percent to 4,126.61. Taiwan’s TAIEX declined 0.47 percent to 33,952.85.
Overnight on Wall Street, semiconductor shares rose after strong earnings from Oracle lifted technology sentiment. Nvidia gained 0.66 percent and Micron Technology advanced 3.86 percent, pushing the Philadelphia Semiconductor Index up 0.63 percent.
South Korean chip stocks, however, traded lower as investors remained cautious. Samsung Electronics fell 1.05 percent to 188,000 won, while SK hynix slipped 0.73 percent to 948,000 won.
South Korea’s main bourses were volatile ahead of the quarterly “quadruple witching” day, when futures and options contracts on stocks and indexes expire simultaneously, often triggering sharp swings.
“Concerns over foreign investor flows during derivatives expiry and continued news surrounding the Strait of Hormuz could limit the market’s upside,” said Han Ji-young, an analyst at Kiwoom Securities, noting that sector-specific divergence is likely in the near term.
As of 10:51 a.m., the benchmark KOSPI was down 0.40 percent at 5,587.45, while the tech-heavy KOSDAQ rose 0.68 percent to 1,144.56.
Shares were mixed across sectors.
Battery maker LG Energy Solution edged up 0.14 percent to 370,000 won, while biotech stocks weakened. Samsung Biologics fell 2.35 percent to 1,618,000 won, and Celltrion declined 1.44 percent to 206,000 won.
Defense-related shares gained amid heightened geopolitical tensions. Hanwha Aerospace rose 2.55 percent to 1,446,000 won, while Hanwha Ocean jumped 3.14 percent to 137,800 won.
Industrial stocks also advanced, with Doosan Enerbility climbing 2.57 percent to 103,600 won and HD Hyundai Heavy Industries rising 2.03 percent to 602,000 won.
Automakers traded mixed. Hyundai Motor slipped 1.32 percent to 523,000 won, while Kia gained 1.30 percent to 164,100 won and Hyundai Mobis fell 2.01 percent to 414,500 won.
Financial shares also showed mixed performance. KB Financial dropped 1.32 percent to 149,300 won, while Shinhan Financial rose 0.55 percent to 91,600 won.
Among technology stocks, Naver gained 0.45 percent to 223,000 won, while SK Square declined 1.06 percent to 559,000 won.
The Korean won weakened against the U.S. dollar, with the greenback rising to 1,477.30 won from the previous session’s 1,466.2 won.
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