Asian markets traded unevenly on Friday, with most indices slipping as rising oil prices weighed on sentiment. The surge in energy costs comes amid stalled US–Iran negotiations and continued disruptions in the Strait of Hormuz, keeping investors cautious across the region.
Japanese equities showed a mixed performance. The Nikkei 225 managed to edge higher as investors reacted to fresh inflation data. Japan’s annual inflation rose to 1.5% in March, up from 1.3% in February, while core inflation increased to 1.8% year-on-year. Despite the uptick, both figures remain below the Bank of Japan’s 2% target, reinforcing expectations that the central bank may hold interest rates steady in its upcoming policy meeting.
Across the region, concerns about energy supply continue to dominate market sentiment. Many Asian economies rely heavily on Middle Eastern oil, making them sensitive to geopolitical developments involving Iran. Ongoing tensions and supply disruptions have kept oil prices elevated, raising fears about inflation and slowing global growth.
Elsewhere, markets struggled to gain momentum. Hong Kong’s Hang Seng Index slipped slightly, while South Korea’s KOSPI declined more sharply, pressured by weakness in technology stocks and profit-taking after recent gains. China’s SSE Composite Index also moved lower, reflecting cautious investor sentiment.
Geopolitical tensions added further pressure. Reports of US forces intercepting Iranian oil tankers and ongoing threats to shipping routes in the Strait of Hormuz have kept markets on edge. In South Korea, however, gains in defense-related stocks such as Hanwha Aerospace and Doosan Enerbility helped limit broader losses as investors rotated into sectors likely to benefit from rising geopolitical risks.
