Asian Stocks Trade Mixed Amid Oil Volatility
Asian equities moved in a mixed and choppy range on Friday as investors reacted to sharp swings in oil prices driven by escalating tensions in the Middle East. Meanwhile, China kept its key lending rates unchanged, offering little fresh direction to markets.
Regional sentiment remained cautious following a weak lead from Wall Street, where stocks closed lower overnight amid renewed concerns over energy-driven inflation. However, U.S. stock futures edged slightly higher during Asian trading hours.
Oil Price Swings Drive Market Uncertainty
Oil price volatility remained the primary factor influencing markets. Crude prices surged close to $119 per barrel on Thursday as fears of supply disruptions around the Strait of Hormuz intensified.
Israeli Prime Minister Benjamin Netanyahu stated that Israel was supporting U.S. efforts to help restore safe passage through the critical shipping route.
Prices later retreated as some supply concerns eased and continued to decline during Asian trading on Friday.
The earlier surge in oil has heightened fears that inflation could remain elevated, particularly for energy-importing economies across Asia.
Regional Markets Show Mixed Performance
Market performance across Asia was uneven. South Korea’s KOSPI rose 0.5%, supported by gains in technology stocks, and was on track for a weekly rise of more than 5%.
In contrast, Singapore’s Straits Times Index slipped 0.3%, while Australia’s S&P/ASX 200 dipped 0.2%.
Japanese markets were closed for a public holiday, while futures linked to India’s Nifty 50 pointed 0.5% higher.
China Holds Loan Prime Rates Steady
China’s central bank left its loan prime rates unchanged for a tenth consecutive month, in line with expectations. The one-year LPR remained at 3.00%, while the five-year rate, which serves as a benchmark for mortgage pricing, was held at 3.50%.
Chinese equities showed modest weakness, with the Shanghai Composite edging down 0.3% and Hong Kong’s Hang Seng index falling 0.7%.
Alibaba Shares Weigh on Hong Kong Market
In corporate news, Alibaba shares listed in Hong Kong dropped around 5% after the company reported a decline in profits, impacted by increased spending and softness in its core e-commerce segment.
Fed Outlook Keeps Global Sentiment Fragile
Investor sentiment globally remained cautious after the Federal Reserve signaled a more measured approach to potential rate cuts earlier in the week.
Rising oil prices have complicated the inflation outlook, prompting markets to scale back expectations for near-term monetary easing.
