Asian markets advanced on Friday despite continued uncertainty surrounding efforts to end the Iran conflict, while investors balanced easing inflation pressures against ongoing energy market disruption.
Japan’s Nikkei 225 surged 2.7% to 63,352.44 after fresh data showed inflation slowed to a four-year low of 1.4% in April, offering some relief despite elevated oil and gas prices linked to the Middle East conflict.
South Korea’s Kospi gained 0.6% to 7,860.59, while Hong Kong’s Hang Seng climbed 1.2% to 25,685.65. China’s Shanghai Composite added 0.5% to 4,096.24.
Australia’s S&P/ASX 200 rose 0.5% to 8,664.00, Taiwan’s Taiex advanced 1.5%, and India’s Sensex edged 0.2% higher.
Oil prices remained elevated amid ongoing disruption around the Strait of Hormuz, with tanker traffic still significantly below levels seen before the war began in late February.
Diplomatic efforts between the US and Iran continued to make only limited progress, adding to uncertainty across energy markets. Reports suggested Pakistani mediators may travel to Tehran in the coming days, although Iranian officials continued signalling resistance to concessions on key negotiating issues.
Brent crude was last trading around USD105 per barrel as traders monitored both geopolitical developments and supply risks.
On Wall Street overnight, the S&P 500 and Nasdaq 100 each rose 0.2%, while the Dow Jones Industrial Average closed at a fresh record high.
US Treasury markets were mixed, though longer-dated bonds rallied as softer oil prices helped ease some inflation concerns.
Meanwhile, US manufacturing activity expanded at its fastest pace in four years, reinforcing expectations of economic resilience even as investors remain cautious that persistently high energy prices could complicate the outlook for inflation and future interest rate policy.
