India VIX falls under 14, signals easing market sentiment despite geopolitical uncertainties

New Zealand shares fell on Thursday's close as investors are kept in suspense over possible US military action against Iran.

The S&P/NZX 50 Index fell 0.46% or 58.27 points to close at 12,569.05.

As the Israel-Iran conflict entered its seventh day, US President Donald Trump still has the world guessing about whether the US will join Israel's bombardment of Iranian nuclear sites, Reuters reported Thursday.

"I may do it. I may not do it. I mean, nobody knows what I'm going to do," Trump said, as quoted by Reuters.

New Zealand said it has suspended millions of dollars in budget funding to the Cook Islands, as the relationship between the two countries continues to deteriorate amid the island group's deepening relationship with China, according to a separate Reuters report.

New Zealand embassy staff have left Iran, and Australia has evacuated a small number of citizens from Israel, but the two governments have warned that closed airspace has limited their ability to help thousands of citizens requesting to leave the conflict zone, Reuters reported.

"There are real limits, hard limits, on what the government can do. The airspace remains closed," Australian Foreign Minister Penny Wong.

In domestic news, New Zealand's economy expanded 0.8% in the March quarter, following a 0.5% expansion in the December 2024 quarter, Stats NZ data showed.

Meanwhile, New Zealand's economy grew 0.8% in the March quarter, driven by strong manufacturing, construction, and professional services, raising hopes of recovery and increasing the chances the Reserve Bank of New Zealand will pause rate cuts in July, according to a report from ANZ.

Also, most New Zealand businesses in China still view the bilateral relationship as strong, but confidence is softening amid concerns political tensions could hurt trade, according to a Thursday report by interest.co.nz, citing the NZ Business Roundtable in China (NZBRIC) survey.

Further, the International Monetary Fund (IMF) said that New Zealand's weak productivity growth poses a significant challenge for the country's long-term economic prospects, and broad-based reforms are needed to tackle the issue, according to the agency's June report.

Also, New Zealand's national residential property values rose by 0.1% in the three months to May, according to the latest QV House Price Index.

In corporate news, Manawa Energy Chief Executive Clayton Delmarter and Chief Financial Officer Phil Wiltshire will step down after implementing the scheme of arrangement in which Contact Energy will acquire the company.

KMD Brands expects US tariffs to impact its fiscal 2025 earnings before interest, taxes, depreciation, and amortization by about NZ$1 million.

SHANGHAI 50 decreased to a 6-week low of 2662.00 Index Points.

Over the past 4 weeks, Shanghai 50 lost 1.96%, and in the last 12 months, it increased 10.59%.

The benchmark KOSPI fell 0.4% to around 2,960 on Thursday, pulling back from over three-year highs as investors raked in profits after four straight weeks of market rally.

Investors also adopted a cautious stance amid mounting external uncertainties, highlighted by concerns on possible US involvement in the Middle East. Domestically, the Bank of Korea projected that headline inflation is expected to remain just below the bank’s 2% target in the near term.

The central bank attributed the outlook to the potential impact of new US tariffs on Chinese goods, which may prompt Chinese exporters to divert shipments to regional markets in order to avoid the impact of Washington’s trade measures.

Among major stocks, losses were seen for Samsung Electronics (0.3%) and Hanhwa Aerospace (1.6%).

Conversely, leading gains were from SK Hynix (0.4%) and Hyundai Motor (0.5%).

The Nikkei 225 dropped 0.7% to around 38,600, while the broader Topix Index slipped 0.6% to 2,791 on Thursday, ending a three-day winning streak as investors locked in profits and weighed global uncertainties.

Overnight, the US Federal Reserve held interest rates steady, with policymakers adopting a cautious stance amid concerns over the inflationary impact of President Donald Trump’s tariffs.

Geopolitical tensions also added pressure, as the ongoing Israel-Iran conflict heightened fears of expanded US involvement in the Middle East. Domestically, investors turned their focus to upcoming inflation data, which could influence the Bank of Japan’s monetary policy outlook.

Earlier this week, the central bank kept rates unchanged and signaled a gradual approach to reducing its balance sheet, reiterating a cautious path toward policy normalization.

Major decliners included Advantest (-1.6%), Disco (-2.1%), Tokyo Electron (-2%), Sony Group (-2.6%), and Kawasaki Heavy Industries (-3.4%).