Asian Markets Fluctuate Amid Middle East Tensions, US Dollar Strengthens on Rate Hike Speculation

Asian markets showed mixed results following a relatively stagnant day for US stocks as investors monitored the situation in the Middle East. The US dollar strengthened against the Japanese yen after officials downplayed the possibility of an immediate interest rate increase, leading to a surge in Tokyo`s Nikkei 225 index. Despite initial expectations of a yen rally due to the new Prime Minister`s stance on interest rates, the currency dropped after the Bank of Japan indicated no immediate plans for further hikes. Hong Kong`s Hang Seng index fell after a significant gain the previous day, while markets in mainland China, South Korea, and Taiwan were closed for holidays. Oil prices climbed as the world awaited Israel`s response to the recent missile attack from Iran, raising concerns about potential disruptions to global crude supplies. US stock markets ended relatively flat amidst the uncertainty in the Middle East and a report suggesting stronger-than-expected US employment figures.