Asian share markets remained uncertain Friday as concerns grew over a possible US military strike on Iran, while oil prices were on track for their third consecutive weekly gain amid rising tensions between Israel and Iran.Overnight, Israel bombed nuclear targets inside Iran, prompting retaliatory missile and drone strikes from Tehran. The intensified week-long air war has shown no signs of de-escalation, fueling market unease.Despite Brent crude slipping 2% to $77.22 per barrel on Friday, it is still headed for a 4% weekly rise, following a sharp 12% surge the previous week.“The ‘two-week deadline’ is a tactic Trump has used in other key decisions, including those involving Russia and Ukraine, and tariffs,” said Tony Sycamore, analyst at IG, noting past examples like decisions on Russia, Ukraine, and tariffs. “There is certainly a risk of this happening again, given the complexities of the situation.”US markets were closed for the Juneteenth holiday, offering little guidance for Asia. Futures trading in Nasdaq and S&P 500 both dipped 0.3% in Asian hours, reported news agency Reuters.MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1% but is set for a 1% weekly decline. Japan’s Nikkei dropped 0.2%.China’s blue-chip index rose 0.3%, and Hong Kong’s Hang Seng climbed 0.5% after the People’s Bank of China held benchmark lending rates steady, as expected.In currency markets, the US dollar slipped 0.2% to 145.17 yen following data showing Japan’s core inflation hit a two-year high in May. While this added pressure on the Bank of Japan to hike rates, investors largely expect no move until December, with only a 50% probability priced in.The US bond market reopened in Asia after Thursday’s closure. Ten-year Treasury yields remained flat at 4.389%, while two-year yields dropped two basis points to 3.925%.In global central bank developments, the Swiss National Bank cut rates to zero, leaving open the possibility of negative rates. The Bank of England held steady but signaled further easing may be needed, while Norway’s central bank surprised markets with its first rate cut since 2020.Gold prices fell 0.2% to $3,363 per ounce and are on track for a weekly loss of 2%.
