Asian markets slide on rising crude, U.S. tariffs

July 24, 2026 (MLN): Asian markets traded broadly lower on Friday as investors reacted to surging oil prices, escalating geopolitical tensions between Iran and the United States, and fresh tariff measures announced by U.S. President Donald Trump, prompting a cautious risk-off sentiment across the region.

Japan's Nikkei 225 led regional losses, falling 2.79%, while the broader Topix index declined 1%. South Korea's Kospi dropped more than 5%, with the small-cap Kosdaq losing 4.95%.

Australia's benchmark S&P/ASX 200 slipped 0.95%, Hong Kong's Hang Seng Index fell 1.33%, and mainland China's CSI 300 eased 1.4%, according to CNBC.

Market sentiment remained under pressure after Brent crude futures climbed above $100 per barrel for the first time since late May, surging around 7% on Thursday, while U.S. West Texas Intermediate (WTI) crude gained nearly 6%.

Oil prices continued to edge higher during Friday's Asian trading session following reports that two Saudi oil tankers were struck in the Red Sea, intensifying concerns over potential supply disruptions.

Adam Turnquist, Chief Technical Strategist at LPL Financial, said the market had entered the latest geopolitical escalation with investors heavily positioned for weaker oil prices, leaving crude vulnerable to a sharp upward move.

He noted that even a modest deterioration in supply expectations could trigger an outsized rally when market sentiment is overwhelmingly bearish.

Investor confidence was also dented by disappointing earnings from major U.S. technology companies. Tesla plunged nearly 15% after missing second-quarter earnings estimates, marking its biggest single-day decline since March 2025.

Alphabet also fell 7% after raising its full-year capital expenditure guidance, recording its steepest daily loss since May 2025.

Adding to market uncertainty, the Trump administration is set to impose new tariffs on dozens of countries shortly after midnight Eastern Time on Friday.

According to a notice published in the U.S. Federal Register, the measures target 60 trading partners over alleged forced-labor violations and will cover approximately 99.4% of U.S. trade, according to the Office of the U.S. Trade Representative.

The combination of rising energy prices, geopolitical uncertainty, weaker technology shares, and fresh trade restrictions kept investors cautious, extending the risk-off mood across Asia-Pacific markets.

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