Asian markets rise further on optimism over Iran-US talks

As optimism over ongoing US-Iran negotiations boosted sentiment, Asian stocks rose for a second day and US equity-index futures slightly increased.

The MSCI Asia Pacific Index as a whole increased by 0.2% as shares in South Korea, Australia, and Japan increased. The Nikkei 225 index increased by almost 1%. Contracts for the Nasdaq 100 Index increased as much as 0.4% in US equity-index futures.

However, when Brent recovered some of Thursday's losses to rise almost 2% to over $104 per barrel, caution returned to the markets. Expectations that US-Iran negotiations could eventually result in a settlement and restore energy flows through the Strait of Hormuz caused oil to drop during the previous session, setting it up for its second weekly loss in three weeks.

Also Read: Oil falls as market hopes for progress in Iran war talks

The yen remained stable elsewhere after Japan's primary inflation indicator slowed more than anticipated. The price of gold dropped to almost $4,530 per ounce.

Investor unease over a protracted closure of the Strait of Hormuz has caused bond yields to rise recently due to worries that rising oil costs will drive inflation and compel central banks to maintain high interest rates. However, since the conflict started in late February, traders have mostly ignored those concerns, driving equities to all-time highs due to a resurgence of interest in the artificial intelligence trade.