Asian stocks fell sharply on Thursday, erasing the previous session’s gains as investors reacted to mixed signals from US President Donald Trump on the possible easing of tensions in the Middle East. In a nationally televised address, Trump warned that Washington would strike Iran “extremely hard” over the next two to three weeks as part of the ongoing military confrontation, vowing that such action could “bring the country back to the Stone Ages.” At the same time, he referred to ongoing diplomatic efforts, leaving investors uncertain about the broader implications for global markets.
The speech fell short of market expectations. Confidence that had been buoyed by optimism ahead of Trump’s address began to fade once investors heard his remarks. Adding to the uncertainty, Trump recently claimed that Iran had requested a ceasefire, a statement that Iran’s foreign ministry quickly rejected as “false and baseless.”
