Markets in the Asia-Pacific region exhibited a predominantly upward trend on Friday, following reports that Iran and Oman were in the process of drafting a protocol aimed at “monitoring transit” through the Strait of Hormuz. This development has sparked optimism regarding the potential partial reopening of this vital waterway. Tanker traffic through the key oil-shipping route “should be supervised and coordinated” with the two countries, stated Kazem Gharibabadi, Iran’s deputy foreign minister of legal and international affairs, as reported. Oil prices experienced a notable increase on Thursday ahead of the market’s closure for the Good Friday holiday. U.S. crude futures surged nearly 12% to $112.06 per barrel, while the global benchmark Brent increased by approximately 8% to $109.24.
The spot price for current physical cargoes of Brent crude oil surged Thursday to $141.36, marking the highest level since the 2008 financial crisis, as reported. South Korea’s Kospi outperformed its regional counterparts, increasing by 2.74% to close at 5,377.3, while the small-cap Kosdaq experienced a modest rise of 0.74%, finishing at 1,063.75. South Korean President Lee Jae Myung is scheduled to engage in a summit meeting with French President Emmanuel Macron on Friday. The Blue House announced that the two nations are anticipated to elevate their relationship to a ‘Global Strategic Partnership,’ representing the first enhancement in 22 years.
It is indicated that the two parties are anticipated to engage in discussions aimed at broadening collaboration in trade and investment, alongside sectors including artificial intelligence, nuclear energy, and space exploration. Japan’s Nikkei 225 rose by 1.26%, concluding the day at 53,123.49, buoyed by consumer non-cyclical stocks. Meanwhile, the broad-based Topix increased by 0.93%, closing at 3,645.19, supported by energy stocks. On Friday, Finance Minister Satsuki Katayama indicated that the influence of U.S. President Donald Trump’s nationwide address on Wednesday was “quite significant,” noting that speculative activity was observed in both crude oil futures and currency markets.
Yields on Japanese government bonds have reached unprecedented levels, with the 2-year JGB yield climbing to 1.39%, marking its highest point since 1995. The benchmark 10-year JGB bond yield reached 2.399%, marking its highest level since 1999. The CSI 300 index in mainland China experienced a reversal of its earlier gains, declining by 0.85% to a level of 4,440.79. The Australian and Hong Kong markets observed closures during the Easter weekend. Overnight in the U.S., markets experienced a volatile session due to rising oil prices; however, the major indexes concluded the day with minimal changes as the blue-chip Dow fell by 61.07 points, or 0.13%. The S&P 500 experienced an increase of 0.11%, while the Nasdaq Composite saw a rise of 0.18%.