Asia report: Markets mixed as investors hold their breath over Gulf tensions

Markets in Asia were in a mixed state as they closed on Friday, as Middle East tensions took a front seat following attacks on two tankers in the Gulf of Oman.

In Japan, the Nikkei 225 was up 0.4% at 12,226.89, as the yen strengthened 0.18% against the dollar to last trade at JPY 108.18.

Of the major components on the benchmark index, automation specialist Fanuc was up 0.1%, fashion firm Fast Retailing rose 1.79%, and technology conglomerate SoftBank Group added 0.2%

The broader Topix index was 0.34% higher in Tokyo, finishing its trading day at 1,546.71.

On the mainland, the Shanghai Composite was down 0.99% at 2,881.97, and the smaller, technology-heavy Shenzhen Composite was down 1.81% at 1,505.06.

South Korea’s Kospi was off 0.37% at 2,095.41, while the Hang Seng Index in Hong Kong was 0.65% lower at 27,118.35.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics up 0.57%, while chipmaker SK Hynix was 0.63% lower.

Oil prices were lower as the region went to bed, with Brent crude last down 0.1% at $61.25 per barrel, and West Texas Intermediate off 0.33% at $52.11.

Crude prices had spiked on Thursday after two oil tankers were attacked off the coast of Iran, amid heightened tensions in the region.

Leaders in Iran have constantly threatened to block sea traffic in the Strait of Hormuz in response to United States sanctions on the country.

It was not immediately clear who was responsible for Thursday’s attack.

“Setting the mixed tone for markets today, escalation of geopolitical tensions in the Gulf region counters the positive investor sentiment from rising expectations of the US Federal Reserve easing,” noted ING economists Nicholas Mapa and Prakash Sakpal.

They described the general sentiment on Friday as being “wait and watch”.

In Australia, the S&P/ASX 200 managed gains of 0.18% to close at 6,554.00, with most of Sydney’s subindices ending in the green.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.1% at 10,235.37, led higher by a number of blue-chip stocks.

Payment technology firm Pushpay Group was up 2.1%, while airport operator AIAL was ahead 0.22%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.23% at AUD 1.4492 and the Kiwi retreating 0.46% to NZD 1.5299.