Asian equity markets closed on a mixed note Friday while crude oil prices climbed amid mounting geopolitical tension in the Middle East and uncertainty over whether the US will join Israel in its escalating war with Iran.US benchmark crude rose 15 cents to $73.65 a barrel and Brent, the global benchmark, was up 19 cents at $76.89. Investors are on edge over the threat of supply disruptions through the Strait of Hormuz, a key oil chokepoint near Iran, and the impact of war on global markets.The latest escalation followed comments from the White House, which said President Donald Trump could decide within two weeks whether to initiate military action against Iran, though diplomacy remains on the table.“Risk sentiments were cautious as Iran-Israel tensions continued roiling,” said Mizuho Bank Ltd. in a morning note.Asian bourses were split: Hong Kong’s Hang Seng jumped 1.2% to 23,504.59, while Shanghai’s Composite recovered to close 0.1% higher at 3,364.83 after early weakness. China’s central bank held its benchmark 1-year and 5-year loan prime rates steady, as widely expected.Japan’s Nikkei 225 edged up 0.1% to 38,538.14 after data showed core inflation rose more than expected to 3.7% in May. ING’s Min Joo Kang said the Bank of Japan is likely to weigh the risk of a global trade shock from Trump’s tariff plans before tightening policy.“Even so, the Bank of Japan is likely to prioritise the negative impact of US tariffs… it’s more concerned about the risk that US trade policies could break the virtuous circle of wage growth and inflation,” said Kang in a note.Meanwhile, Australia’s S&P/ASX 200 fell 0.3% to 8,500.40, while South Korea’s Kospi gained 1.2% to 3,014.05.The Bank of England on Thursday also left its key interest rate unchanged at 4.25%, citing risks from the Israel-Iran standoff as a key reason for caution.Currency markets saw minor moves. The dollar slipped to 145.28 yen from 145.46, while the euro rose to $1.1530 from $1.1498. US stock futures were slightly lower, with Wall Street remaining closed Thursday for the Juneteenth holiday.
