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Asian stocks mostly retreated and lipid prices jumped connected Monday (May 18, 2026) aft U.S. President Donald Trump warned Tehran that the “clock is ticking” arsenic U.S.-Iran negotiations implicit a imperishable extremity to the warfare stall.
U.S. futures fell much than 0.6%.
Markets successful Japan and South Korea pulled further backmost from their records. Tokyo's Nikkei 225 fell 0.9% to 60,843.09, a diminution led by technology-related stocks, aft it reached all-time intraday precocious levels past week supra 63,000.
The output connected the 10-year Japanese authorities enslaved surged to 2.8%, its highest level since the precocious 1990s, portion of a displacement toward higher yields arsenic the Bank of Japan gradually raises involvement rates and higher vigor costs rise expectations of rising inflation. That's up from astir 2.55% conscionable 1 week ago.
Seoul's Kospi jumped 0.9% to 7,558.50 aft trading little earlier successful the day. It crossed the 8,000 people connected Friday (May 15, 2026), supported by buying of exertion shares driven by the roar successful artificial intelligence, but aboriginal declined partially connected profit-taking by investors.
Hong Kong's Hang Seng mislaid 1.6% to 25,543.32. The Shanghai Composite scale edged 0.1% little to 4,132.24, aft China reported weaker-than-expected retail information for April.
Australia's S&P/ASX 200 declined 1.4% to 8,508.40.
Taiwan's Taiex dropped 1.1%, portion India's Sensex fell 0.6%.
Oil prices roseate aft Mr. Trump warned Iran successful a societal media station that “the Clock is Ticking, and they amended get moving, FAST, oregon determination won't beryllium thing near of them” pursuing a telephone with Israeli Prime Minister Benjamin Netanyahu.
Mr. Trump has acceptable deadlines for Iran and past backed off, truthful investors person remained cautious astir the concern successful the Strait of Hormuz and however it is impacting planetary vigor flows, including lipid and gas.
The strait is inactive mostly closed, and the U.S. has besides imposed its ain oversea blockade connected Iranian ports since past month.
A drone onslaught implicit the play connected a United Arab Emirates' atomic powerfulness plant added to worries implicit a imaginable escalation successful the conflict.
Brent crude, the planetary standard, gained 1.9% to $111.31 per barrel. It was trading astatine astir $70 a tube successful precocious February earlier the commencement of the Iran war. Benchmark U.S. crude was trading 2.3% higher astatine $107.83 per barrel.
“Re-escalation risks are increasing,” ING commodities strategists Warren Patterson and Ewa Manthey wrote successful a probe note. While determination has besides been a prime up connected shipping activities implicit the past week astir the strait, they said, “this tin alteration quickly.”
The brace besides noted that the lipid marketplace was reacting to the deficiency of tangible results connected the Iran warfare aft past week's widely-watched summit betwixt Trump and Chinese President Xi Jinping successful Beijing, adjacent arsenic the White House said some the U.S. and China had agreed that the Strait of Hormuz indispensable stay open.
U.S. officials had hoped that Beijing could usage its influence, fixed its economical ties with Iran, to assistance broker a bid statement and reopen the strait.
Mr. Trump said past week successful an interrogation that Xi told him China “would similar to beryllium of help” successful negotiating an extremity to the war. So acold it's been unclear however Beijing mightiness bash that.
The output connected the U.S. 10-year Treasury was astatine astir 4.63%, up from 4.47% past Thursday (May 14, 2026) and sharply higher than the astir 4% level it was holding astatine earlier the Iran war.
On Friday (May 15, 2026), the benchmark S&P 500 dropped 1.2% from the grounds it acceptable the time before. The Dow Jones Industrial Average fell 1.1% and the technology-heavy Nasdaq composite mislaid 1.5%.
In different dealings, the U.S. dollar roseate to 159.02 Japanese yen from 158.62 yen. The euro was trading astatine $1.1626, up from $1.1622.
