Asian Shares Mixed Amid Middle East Tensions, Rising Oil Prices

Asian stock markets showed mixed performance on Friday following escalating tensions in the Middle East, which negatively impacted Wall Street but led to a surge in crude oil prices. While Japan`s Nikkei index saw a slight increase, other Asian markets like Australia and Hong Kong experienced declines and gains respectively. The US dollar weakened against the Japanese yen.

Newly elected Japanese Prime Minister Shigeru Ishiba is expected to deliver a policy speech outlining his government`s stance on economic matters like interest rates and spending. The potential for rising interest rates in Japan has influenced the value of the yen against the US dollar. A weaker yen could benefit Japanese exporters but might also lead to increased import costs and inflation.

Meanwhile, US stock markets fell on Wednesday due to rising oil prices as investors await Israel`s response to Iran`s missile attack. The price of Brent crude oil saw a significant increase, fueled by discussions between the US and Israel regarding a potential Israeli strike on Iranian oil facilities. While concerns about potential disruptions to global oil supply contribute to the price surge, ample oil inventories are currently helping to moderate price increases.