Asia-Pacific markets exhibited a mixed opening as investors maintained a cautious stance, reflecting the ongoing geopolitical uncertainty despite the recent three-week extension of the Israel-Lebanon ceasefire. Israel and Lebanon have reached an agreement to prolong their ceasefire for an additional three weeks, as announced by President Donald Trump following discussions with senior U.S. officials at the White House on Thursday. “The meeting was highly successful!” Trump stated in a Truth Social post regarding the extension of the temporary truce.
The temporary truce, initially scheduled to last for 10 days, has been extended to allow for further diplomatic initiatives, with Washington committing to collaborate with Lebanon to enhance its defenses against Hezbollah. International benchmark Brent crude experienced an increase of 0.82%, reaching $105.93 per barrel in Friday trading, while U.S. West Texas Intermediate futures rose by 0.51% to $96.34 per barrel. Japan’s Nikkei 225 rose 0.97% to end the trading day at 59,716.18, while the Topix closed relatively flat at 3,716.59 following an acceleration in core inflation in Japan for the first time in five months, which increased to 1.8% in March, amid energy concerns exacerbated by the conflict in Iran.
Government data indicated that the inflation figure, excluding fresh food prices, aligned with the 1.8% anticipated by economists, and represented an increase from the 1.6% recorded in February. South Korea’s Kospi concluded the trading day unchanged at 6,475.63, whereas the small-cap Kosdaq experienced an increase of 2.51%, reaching 1,203.84. The Hong Kong Hang Seng index experienced a decline of 0.16%, whereas the CSI 300 decreased by 0.35%, settling at 4,769.37. In Australia, the S&P/ASX 200 experienced a decline of 0.08%, settling at 8,786.5.
Overnight in the U.S., equities experienced a decline on Thursday, primarily driven by a decrease in software stocks and an uptick in oil prices, as investor apprehension regarding the direction of the Iran conflict exerted pressure on the markets. The S&P 500 experienced a decline of 0.41%, concluding at 7,108.40, following a momentary achievement of a new all-time intraday high. The Nasdaq Composite, characterized by its technology focus, experienced a decline of 0.89%, closing at 24,438.50. It achieved a new all-time high during the session. The Dow Jones Industrial Average declined by 179.71 points, representing a decrease of 0.36%, closing at 49,310.32.