The MSCI Asia Pacific Index rose 0.2%. The Kospi advanced 1.3% in early trade, though a later reading showed the South Korean benchmark up a more modest 0.059%.
This came after Wall Street benchmarks fell for a second straight session overnight, though Nasdaq 100 futures pointed to a rebound, adding 0.3% in early Asian trade.
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Japan’s Topix rose 0.31%, even as the broader Nikkei 225 slipped 0.85%. Hang Seng futures were little changed, as was the offshore yuan, holding at 6.7481 per dollar, while the Japanese yen was also largely steady at 158.47 per dollar.
Brent crude gained more than 1% to touch $83.45 a barrel, driven by intensifying West Asia tensions and continued ambiguity over efforts to reopen the strategically vital Strait of Hormuz. West Texas Intermediate followed suit, up 1.1% at $78.17 a barrel.
The rise in energy prices reignited worries that the Federal Reserve might have to hold interest rates higher for longer. The 10-year Treasury yield jumped seven basis points to 4.68% during the US session, though Treasury futures slipped slightly in Asian hours.
The US dollar held its ground after notching its sharpest single-day gain in a fortnight.
With no breakthrough yet on a West Asia accord, energy prices could stay elevated, compounding volatility in markets already on edge over the AI trade.Adding to the uncertainty, Iran is reportedly seeking to bar US and Israeli vessels from the Strait of Hormuz under a proposed agreement with Oman, while also demanding compensation from nations it deems hostile before granting passage, according to local media reports.
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The development comes even as officials in both Washington and Tehran have hinted that a broader deal could be within reach.
US President Donald Trump, who had recently pulled back from threats of renewed military action against Iran, said on Thursday that talks were “going fine” and that he remained personally involved, though he stopped short of confirming whether an agreement had been struck according to a Bloomberg report.
Separately, Iran’s Fars news agency reported that the country’s naval forces had struck “hostile targets” near the entrance to the strait.
