In Hong Kong, the benchmark Hang Seng Index opened down 183 points, or 0.7 percent, at 26,210.
The China enterprises index was down 64 points, or 0.7 percent, at 8,840 while the tech index was 36 points, or 0.7 percent, lower at 5,055.
On the mainland, the benchmark Shanghai Composite Index opened down 12 points, or 0.3 percent, at 4,043.
The Shenzhen Component Index was almost 10 points, or 0.07 percent, higher at 14,806 while the ChiNext Index, tracking China’s Nasdaq-style board of growth enterprises, was up 0.47 percent at 3,643.
In Tokyo, the Nikkei Stock Average opened down 263 points, or 0.44 percent, at 59,255.
At one point before midday, the benchmark’s losses doubled to 542 points, or 0.91 percent, putting it at 58,975.
In Seoul, the Korea Composite Stock Price Index edged up just over a point, or 0.02 percent, to 6,227.
The Kospi was down 18 points, or 0.3 percent, at 6,207 just before noon.
Investors have been quick to take an optimistic view on any signs of denouement this month, even though the Strait of Hormuz – through which a fifth of the world’s oil and gas supply typically flows – remains closed.
A 10-day ceasefire between Lebanon and Israel went into effect on Thursday and US President Donald Trump said the next meeting between Washington and Tehran might take place over the weekend, when their current ceasefire is due to expire.
That pushed oil prices lower, with Brent crude futures falling more than one percent to US$98.14 a barrel.
US West Texas Intermediate crude futures fell 1.6 percent to US$93.15 a barrel.
For Andrew Chorlton, CIO for public fixed income at M&G, the past two weeks have been surprising in how quickly markets have been willing to look through the conflict and energy shock.
“There’s quite a strong contrast between what policymakers and central bankers are saying about the risks that this [conflict] is creating versus what the market is implying,” he said.
“That seems somewhat complacent. It seems unlikely that there shouldn’t be some additional risk premium priced in, either to growth or to inflation.”
Nick Twidale, chief market strategist at ATFX Global, said “I think equity markets are remaining positive and some solid US earnings have helped, but – and it’s a big but – we need to see some concrete evidence that peace is going to last.
“And to me, that is a full reopening of the strait, or we could see some substantial corrections in global stocks in the coming days and weeks.” (Reuters/Xinhua)
