Markets across Asia posted increases Friday, mirroring moderate advances seen on Wall Street, as crude oil costs continued climbing due to persistent uncertainty surrounding the Iran conflict.
Energy prices had dropped Thursday during U.S. market hours, reducing strain on bond markets as yields declined. Bond yields had surged earlier this week to levels that posed risks to global economic growth and threatened to drive down values of stocks, bitcoin, and various other investments.
U.S. market futures showed slight increases while Tokyo’s Nikkei 225 jumped 2.7% to reach 63,352.44. Economic data revealed inflation dropped to a four-year low of 1.4% in April, even as energy costs increased due to the ongoing conflict.
South Korea’s Kospi index advanced 0.6% to 7,860.59.
Hong Kong’s Hang Seng climbed 1.2% to 25,685.65, while the Shanghai Composite index increased 0.5% to 4,096.24.
Australia’s S&P/ASX 200 moved up 0.5% to 8,664.00.
Taiwan’s Taiex traded 1.5% higher, while India’s Sensex edged up 0.2%.
Crude oil costs stayed high due to disruptions affecting the Strait of Hormuz, a vital passage for energy transportation, with shipping operations remaining significantly reduced compared to levels before the Iran conflict started in late February. Ongoing discussions between the U.S. and Iran have continued without resolution, contributing to market uncertainty.
Congressional Republicans faced challenges Thursday in securing enough support to defeat legislation requiring President Donald Trump to end involvement in the war, pushing scheduled votes on the issue into June.
Brent crude, the global benchmark, increased 1.5% to $104.08 per barrel. Prices were approximately $70 per barrel in February before hostilities commenced. U.S. benchmark crude traded 0.9% higher at $97.25 per barrel.
“Markets are still searching for signs of progress in a potential deal between the US and Iran,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Friday. “While there are signs of optimism, uncertainty reigns.”
Wall Street posted gains Thursday, with the benchmark S&P 500 rising 0.2% to 7,445.72. The Dow Jones Industrial Average increased 0.6% to 50,285.66, while the technology-heavy Nasdaq composite moved up 0.1% to 26,293.10.
Nvidia stock dropped 1.8% even after reporting quarterly earnings that exceeded expectations amid the artificial intelligence boom, with some market analysts still considering the share price undervalued.
Southwest Airlines increased 2.7% and American Airlines rose 4.9% as energy costs declined before recovering. Ralph Lauren jumped 13.9% after reporting quarterly results that beat forecasts.
In early Friday trading, the yield on the U.S. 10-year Treasury stood at 4.56%, down from over 4.67% earlier this week, when increased global inflation pressures related to the conflict drove bond yields higher.
The U.S. dollar strengthened to 159.02 Japanese yen from 158.98 yen. The euro traded at $1.1613, declining from $1.1619.
