Asia stocks mixed as oil rises on tensions

Asian markets showed a mixed performance on Friday while oil prices continued to rise, as uncertainty surrounding a fragile Middle East ceasefire and stalled US-Iran talks weighed on investor sentiment.

MSCI’s broad Asia-Pacific index excluding Japan edged up 0.3 per cent, putting it on track for a weekly gain of 0.8pc. Japan’s Nikkei 225 rose 0.45pc, while equities in China, South Korea and Hong Kong declined, reflecting uneven confidence across the region.

Investor caution persisted amid ongoing tensions in the Strait of Hormuz, a key global oil transit route. Iran recently signalled tighter control over the strait, while Donald Trump warned of strong military action against threats to shipping, adding to market volatility.

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In energy markets, oil prices climbed further due to supply concerns linked to the standoff. Brent crude rose over 1pc to $106.21 per barrel, while US crude also gained around 1pc to $96.77 per barrel. Analysts say fears of disruption to global energy flows continue to drive prices higher.

US stock futures showed modest recovery, with S&P 500 futures rising 0.1pc and Nasdaq Composite futures up 0.6pc after overnight losses. European futures, however, pointed lower, indicating broader global caution.

Currency markets remained relatively stable, though the US dollar strengthened on safe-haven demand. The Japanese yen hovered near the key 160 per dollar level, raising speculation of possible intervention by the Bank of Japan.

Investors are now turning their focus to upcoming policy decisions from major central banks, including the Federal Reserve, European Central Bank, and Bank of England, as they assess the economic impact of geopolitical tensions and rising energy prices.

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