TOKYO, June 19 (Reuters) – Asian stock markets slipped on Thursday as investors grew cautious amid fears the United States might join the ongoing Israel-Iran air conflict. Meanwhile, safe-haven assets like gold and the Japanese yen saw gains.
US President Donald Trump kept the world guessing about whether America will enter the conflict. Speaking outside the White House, he said, “I may do it. I may not do it.” According to the Wall Street Journal, Trump has approved attack plans on Iran but has yet to give the final order, waiting to see if Tehran will abandon its nuclear program.
Japan’s Nikkei index fell 0.8%, pressured further by a stronger yen, which reduces earnings for Japanese exporters. Taiwan’s main stock index dropped 0.9%, while Hong Kong’s Hang Seng slipped 0.8%.
US S&P 500 futures were down 0.4%, though most US markets were closed on Thursday for a national holiday.
Gold prices rose 0.3% to $1,378 an ounce. “Market participants remain edgy and uncertain,” said Kyle Rodda, senior analyst at Capital.com. He added that speculation, likely encouraged by the Trump administration, that the US may intervene in the conflict could escalate tensions. Such action could provoke retaliation from Iran and risk a wider regional war, affecting global energy supplies and economic growth.
Brent crude oil prices dipped slightly to $76.32 per barrel but stayed close to last week’s 4.5-month high of $78.50.
The yen strengthened 0.2% to 144.92 per dollar. The US dollar also gained, rising 0.1% against the euro to $1.1472 and 0.2% versus the British pound to $1.3398. The Swiss franc slipped 0.1% to 0.8193 per dollar.
Later on Thursday, the Bank of England and Swiss National Bank are expected to announce policy decisions. The Bank of England is likely to keep interest rates unchanged, while the Swiss National Bank may cut rates by 25 basis points.
Overnight, the Federal Reserve kept rates steady as expected and maintained projections for two rate cuts this year. However, Fed Chair Jerome Powell warned of “meaningful” inflation ahead due to the impact of President Trump’s trade tariffs.
