Asian equities slipped on Friday as geopolitical tensions kept investors cautious. The conflict involving Iran and regional powers has pushed oil prices close to the psychologically important $100-per-barrel level. The surge in energy costs has raised fears that global inflation could rise again. As a result, investors trimmed risk exposure across regional markets.
Crude oil prices remained near recent highs during trading. Brent Crude was trading around $99.85 per barrel, while West Texas Intermediate stood near $95.05. Prices eased slightly after the United States issued a temporary permit allowing purchases of Russian oil cargoes stuck at sea. Despite this, concerns over supply disruptions persist.
Asian stock indices broadly declined. The MSCI Asia Pacific Index dropped about 0.5 percent, heading for a weekly loss of roughly 1.5 percent. Japan’s Nikkei 225 fell more than 1 percent, while South Korean and Taiwanese equities also slipped. Technology shares led the downturn across the region.
The rise in oil prices has also affected expectations around interest rate policy. Markets had earlier expected deeper rate cuts from the Federal Reserve. Now traders expect far less easing due to inflation risks. This shift has pushed government bond yields higher.
Meanwhile, the US dollar strengthened as investors sought safety during the market turmoil. Other major currencies faced pressure, while gold prices moved slightly higher. Investors are now watching a series of upcoming central bank meetings. Decisions from institutions like the European Central Bank could shape market sentiment.