BY COMFORT OGBONNA
Asian stock markets delivered a mixed performance on Friday as rising oil prices and ongoing uncertainty surrounding stalled negotiations between the United States and Iran weighed on investor sentiment. The lack of progress in diplomatic efforts to end the conflict has continued to ripple across global financial markets, keeping traders cautious despite pockets of strong performance in regional equities.
In Japan, the Nikkei 225 rose 1% to close at 59,716.18, supported by strong demand for technology stocks. The index has been on a remarkable run and recently touched an intraday record above 60,000, underscoring sustained investor enthusiasm for tech-driven growth in the country.
Markets across Greater China were more subdued. Hong Kong’s Hang Seng managed to recover from earlier losses to gain 0.2%, ending at 25,976.65. Meanwhile, mainland China’s Shanghai Composite slipped 0.1% to 4,090.48, reflecting lingering caution among investors as geopolitical risks remain elevated.
In South Korea, the Kospi finished nearly flat at 6,475.63, while Australia’s S&P/ASX 200 edged down 0.1% to 8,786.50, highlighting the uneven performance across the region.
Taiwan stood out as a bright spot, with the Taiex surging 3.2%. The rally was largely driven by gains in semiconductor giant TSMC, whose shares jumped 5.1%. As a dominant player in the global chip industry, TSMC continues to play a pivotal role in shaping Taiwan’s market direction.
Geopolitical tensions remain at the center of market uncertainty. Efforts to advance a new round of peace talks between the U.S. and Iran have shown little progress, even after Donald Trump announced an indefinite extension of a temporary ceasefire earlier in the week. The announcement initially raised hopes for de-escalation, but the absence of concrete developments has left markets on edge.
A major flashpoint continues to be the Strait of Hormuz, a crucial global energy corridor through which roughly one-fifth of the world’s oil and natural gas typically flows. The waterway remains largely shut, with a U.S. naval blockade of Iranian ports still in place. Recent hostilities, including attacks on commercial vessels and seizures of ships, have further intensified concerns about supply disruptions.
The U.S. military has stepped up operations in the region, focusing on clearing naval mines and securing shipping routes. Escalating tensions in such a vital energy hub have played a major role in keeping oil prices elevated.
Crude prices have surged since the conflict began, adding to inflationary pressures worldwide. Brent crude for June delivery rose 3.1% to settle at $105.07 per barrel on Thursday, briefly climbing above $107 during trading. The more actively traded July contract settled at $99.35 after touching $101. Early Friday trading saw Brent inch up further to $99.37, while U.S. benchmark crude rose to $96.08 per barrel.
The sustained increase in energy prices has heightened concerns about global inflation and economic growth, as higher fuel costs can reduce consumer spending and increase operational expenses for businesses. Despite these risks, global markets—particularly in the United States—have shown resilience.
On Wall Street, the S&P 500 slipped 0.4% to 7,108.40 on Thursday, pausing after a prolonged rally that had pushed it to record highs. The Dow Jones Industrial Average also fell 0.4% to 49,310.32, while the tech-heavy Nasdaq Composite declined 0.9% to 24,438.50.
Among individual stocks, Tesla dropped 3.6% despite reporting better-than-expected quarterly earnings. Investors appeared concerned about the company’s rising capital expenditures as it accelerates investments in artificial intelligence and robotics, signaling a shift in strategic focus that may impact short-term profitability.
Media stocks also faced pressure. Paramount Skydance slid 4.5% following developments tied to industry consolidation, while Warner Bros. Discovery fell 1.6% after shareholder approval of its merger-related plans.
Currency markets showed limited movement. The U.S. dollar edged slightly higher against the Japanese yen, trading at 159.76 yen, while the euro was marginally lower at $1.1682.
Market analysts suggest that despite geopolitical risks and rising energy prices, investors are still willing to remain patient in anticipation of a potential diplomatic breakthrough. The resilience of equities, particularly in the U.S., reflects confidence in corporate earnings and the belief that tensions may eventually ease.
For now, however, the combination of elevated oil prices, fragile negotiations, and ongoing military activity continues to cast a shadow over global markets, leaving investors balancing optimism with caution.
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