Asian markets rise, oil prices stay elevated amid Iran war uncertainty

Asian stock markets advanced on Friday, following modest gains on Wall Street, as investors weighed ongoing tensions in the Iran war. Tokyo’s Nikkei 225 surged 2.7% to 63,352.44, while Hong Kong’s Hang Seng rose 1.2% to 25,685.65. South Korea’s Kospi climbed 0.6% to 7,860.59, and Shanghai’s Composite index increased 0.5% to 4,096.24. Oil prices remained elevated due to disruptions near the Strait of Hormuz, a critical shipping route for global oil and gas. Brent crude oil, the international benchmark, gained 1.5% to $104.08 per barrel, up from around $70 in February before the war began. US crude traded 0.9% higher at $97.25 per barrel. Shipping activity in the Strait remains significantly below pre-war levels, as US-Iran negotiations drag on without clear resolution. US Treasury yields eased slightly, with the 10-year yield dropping to 4.56% from over 4.67% earlier in the week, reducing pressure on global markets. The US dollar strengthened to 159.02 yen, while the euro fell to $1.1613. Analysts at ING noted markets are still seeking signs of progress in potential US-Iran talks, despite lingering uncertainty. On Wall Street, the S&P 500 rose 0.2% to 7,445.72, the Dow Jones climbed 0.6% to 50,285.66, and the Nasdaq edged up 0.1% to 26,293.10. Individual stocks saw mixed movements, with Nvidia dropping 1.8% despite strong AI-driven earnings, while Southwest Airlines and American Airlines gained 2.7% and 4.9%, respectively, reflecting volatility tied to oil price fluctuations. Ralph Lauren surged 13.9% after reporting better-than-expected quarterly results. Republicans in Congress faced delays in voting on legislation to compel President Donald Trump to withdraw from the war, pushing decisions into June. The ongoing geopolitical tensions continue to influence financial markets, particularly in energy and equities sectors.