Asian markets rise, oil prices stay elevated amid Iran war uncertainty

Asian shares advanced Friday following modest gains on Wall Street, while oil prices rose as efforts to end the Iran war yielded limited results.

Oil prices had eased Thursday in US trading, alleviating pressure from the bond market as yields fell. Earlier this week yields climbed so high they threatened to slow economies worldwide and undercut prices for stocks, bitcoin and all kinds of other investments.

US futures edged higher and Tokyo's Nikkei 225 was up 2.7 per cent at 63,352.44. A report showed inflation hitting a four-year low in April, at 1.4 per cent, despite higher prices for oil and gas due to the war.

South Korea's Kospi gained 0.6 per cent to 7,860.59.

Hong Kong's Hang Seng rose 1.2 per cent to 25,685.65, while the Shanghai Composite index climbed 0.5 per cent to 4,096.24.

Australia's S&P/ASX 200 was up 0.5 per cent at 8,664.00.

Taiwan's Taiex was trading 1.5 per cent higher, while India's Sensex edged up 0.2 per cent.

Oil prices remained elevated over disruptions around the Strait of Hormuz, a critical waterway for oil and gas transit, with shipping activities still well below before the Iran war began in late February. Talks between the US and Iran have dragged on, adding to uncertainty.

Republicans in Congress struggled Thursday to find the votes to dismiss legislation that would compel President Donald Trump to withdraw from the war, delaying planned votes on the matter into June.

Brent crude, the international standard, gained 1.5 per cent to $104.08 a barrel. It was around $70 per barrel in February before the war's start. Benchmark US crude traded 0.9 per cent higher at $97.25 a barrel.

"Markets are still searching for signs of progress in a potential deal between the US and Iran," ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Friday. "While there are signs of optimism, uncertainty reigns."

Wall Street gained on Thursday, with the benchmark S&P 500 adding 0.2 per cent to 7,445.72. The Dow Jones Industrial Average climbed 0.6 per cent to 50,285.66, while the technology-heavy Nasdaq composite edged up 0.1 per cent to 26,293.10.

Shares of Nvidia fell 1.8 per cent despite better-than-expected quarterly results on the artificial intelligence frenzy, with some analysts believing its share price still as undervalued.

Southwest Airlines gained 2.7 per cent and American Airlines climbed 4.9 per cent as oil prices eased before bouncing back. Ralph Lauren surged 13.9 per cent following stronger-than-expected quarterly results.

In other dealings early Friday, the yield on the US 10-year Treasury was at 4.56 per cent, down from more than 4.67 per cent earlier in the week, when higher global inflationary pressures stemming from the war fuelled a surge in bond yields.

The US dollar rose to 159.02 Japanese yen from 158.98 yen. The euro was trading at $1.1613, down from $1.1619.