Asian stock markets showed a mixed performance on Friday as rising geopolitical tensions between the United States and Iran kept investors cautious, while oil prices continued to climb amid ongoing uncertainty.
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A broad regional index of Asia-Pacific shares outside Japan edged up slightly, while Japan’s Nikkei 225 posted modest gains. However, markets in China, South Korea, and Hong Kong moved lower, reflecting uneven investor sentiment across the region.
The cautious mood comes as a fragile ceasefire in the Middle East remains under strain, with stalled negotiations between Washington and Tehran adding to uncertainty. Analysts noted that investors are struggling to balance hopes for de-escalation with fears that the conflict could persist or worsen.
Oil markets reacted strongly to the continued tensions, particularly around the strategically vital Strait of Hormuz. Brent crude futures rose more than 1% to $106.21 per barrel, while West Texas Intermediate crude climbed to $96.77 per barrel. The gains were driven by concerns over potential disruptions to global energy supplies.
Currency markets were relatively stable, although the Japanese yen hovered near the psychologically significant level of 160 against the US dollar. Traders remained alert to the possibility of intervention by Japanese authorities to stabilise the currency.
Meanwhile, global investors are closely watching upcoming policy decisions by major central banks, including the US Federal Reserve, European Central Bank, and Bank of England. Policymakers are expected to assess the impact of rising energy prices and geopolitical risks on inflation and economic growth.
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Despite a reported extension of the ceasefire between Israel and Lebanon, markets showed limited reaction, suggesting that broader regional tensions and the US-Iran standoff remain the dominant factors shaping investor outlook.