Asia Markets Edge Higher Amid Iran Conflict Concerns and Oil Price Volatility

Asia-Pacific markets mostly rose on Friday as investors cautiously assessed the impact of escalating tensions in the Middle East on energy supplies. Following a decline on Wall Street, regional markets staged a late comeback, highlighting investor sensitivity to geopolitical developments and oil price swings.

Oil markets remained volatile overnight, with prices briefly breaking the $80-per-barrel mark. Brent futures eased slightly to $85.14, while U.S. West Texas Intermediate slipped 0.53% to $80.58, after recording its largest single-day gain since May 2020. Rising oil prices are fueling concerns over potential supply disruptions amid the ongoing Iran conflict.

Market uncertainty was compounded by developments in the U.S., where New York Attorney General Letitia James and prosecutors from 23 states sought to block former President Donald Trump’s global tariff regime. This follows a U.S. Court of International Trade ruling that companies could claim refunds for duties previously struck down by the Supreme Court.

Regional stock performance was mixed. South Korea’s Kospi finished marginally higher at 5,584.87, while the small-cap Kosdaq surged 3.43%, reflecting strong gains in defense stocks such as LIG Nex1, which rose over 9% after its air defense systems reportedly intercepted Iranian missiles targeting the UAE. Japan’s Nikkei 225 advanced 0.62%, and the Topix ended 0.39% higher, partly boosted by news that SoftBank is pursuing a $40 billion loan to invest in OpenAI.

Elsewhere, Australia’s S&P/ASX 200 slipped 1%, weighed down by basic materials, while Hong Kong’s Hang Seng index rose 1.69%, extending gains from Thursday. In contrast, India’s Nifty 50 fell 0.67%. The U.S. overnight sell-off, led by Boeing and Caterpillar, underscores the global sensitivity to energy risks and broader economic slowdowns, which continue to influence Asia’s market sentiment.

source: cnbc