Asia-Pacific markets traded mixed on Friday as investors weighed regional data releases and remained alert to heightened geopolitical tensions between Israel and Iran.
The White House said President Donald Trump is expected to make a decision within two weeks on whether to support Israel’s military action with a direct strike on Tehran, keeping markets on edge over the prospect of further escalation.
By 11:35 am AEST (1:35 am GMT), Australia’s S&P/ASX 200 slipped 0.5%, Japan’s Nikkei 225 slipped 0.2%, and South Korea’s Kospi 200 rose 0.6%.
On the data front, Japan’s core consumer inflation rose to 3.7% in May, its highest reading since January 2023. The figure, which excludes volatile fresh food prices, surpassed both April’s 3.5% and the 3.6% expected as rice prices more than doubled.
Meanwhile, headline inflation eased from 3.6% to 3.5%.
The uptick adds pressure on the Bank of Japan as it navigates its path away from ultra-loose policy.
In China, the People’s Bank of China kept its benchmark lending rates unchanged, following sweeping monetary easing measures introduced last month.
The one-year loan prime rate was maintained at 3.0%, while the five-year mortgage rate remained at 3.5%.
South Korea’s wholesale inflation also slowed. According to preliminary data from the Bank of Korea, wholesale prices rose 0.3% year-on-year in May, compared to 0.8% in April.
In the United States, financial markets remained closed on Thursday for the Juneteenth public holiday.
The rising geopolitical risk was reflected in commodity markets. Brent crude surged 2.8% to close at a fresh five-month high of US$78.85 per barrel, driven by fears that conflict in the Middle East could disrupt supply routes. Spot gold held steady at US$3,370.78 per ounce, as investors maintained exposure to safe-haven assets.
Chinese equities closed lower, as the Shanghai Composite fell 0.8% to 3,362.1, while the CSI 300 Index slipped 0.8% to 3,843.1.
Hong Kong’s Hang Seng Index lost 2% to 23,237.7, while India’s BSE Sensex edged down 0.1% to 81,361.9.
European markets also ended mixed on Thursday. The UK’s FTSE 100 declined 0.6% to 8,791.8, Germany’s DAX shed 1.1% to 23,057.4, and France’s CAC 40 fell 1.3% to 7,553.5.
