Asian markets ended mostly lower on Thursday tracking Wall Street’s muted cues overnight as fears of a prolonged conflict in the Middle East overshadowed stronger-than-expected earnings from major US tech giants. Meanwhile, surging crude oil prices and US Federal Reserve's hawkish hold have also prompted profit-taking across the region. The 8-4 FOMC vote was the most divided since October 1992, signalling that interest rates will likely stay ‘higher for longer’ to combat stubborn inflation. A private report said that the US military would brief President Trump on potential action against Iran, raising concerns that the conflict could escalate. Trump also reiterated that the US would maintain its naval blockade on Iran until a nuclear agreement is reached. Japan's high energy import dependency, with roughly 90% of its energy needs imported, also kept traders and market participants cautious. However, Chinese shares climbed after data showed manufacturing PMI beat market expectations at 50.3 in April 2026, while a private survey revealed that the manufacturing PMI climbed to its highest level since December 2020 at 52.2.