Asian stock markets rose on Friday in a trading environment marked by thin volumes and several public holidays, with the region taking direction from a strong U.S. session that produced fresh record closes. Major East Asian markets were operating with reduced participation, as exchanges in China, Hong Kong, Singapore and India remained closed for public holidays.
The regional advance reflected investor appetite after the S&P 500 and the NASDAQ Composite closed at new highs in the prior U.S. session, momentum driven by a mix of upbeat corporate earnings and a retreat in oil prices. Apple disclosed quarterly results after U.S. markets had shut, reporting numbers that beat expectations and helping to bolster sentiment around technology stocks.
In Tokyo, the Nikkei 225 advanced 0.6% on the day, while the broader TOPIX index was effectively flat. These gains, however, were restrained by a resurgence of geopolitical risk related to the ongoing U.S.-Iran tensions. Media reports indicated that U.S. President Donald Trump was scheduled to receive a briefing on potential military options against Iran, fueling investor concern about the prospect of further escalation.
Iran has issued warnings that any new U.S. strike would prompt "long and painful strikes" on American forces in the region, comments that have amplified anxiety across markets. The Strait of Hormuz was reported to be effectively closed, disrupting a crucial channel for global oil shipments and adding to expectations of a tighter supply backdrop.
Oil prices reflected that stress earlier in the week. Brent crude spiked to more than $126 per barrel at one point on Thursday - its highest level in four years - before retreating later in the session. The swings in oil pricing have played a prominent role in shaping investor risk appetites across Asia.
Data for April highlighted continued strong equity performance across the region. Markets recorded sizable monthly gains on optimism around AI-related growth and a temporary easing of U.S.-Iran hostilities prior to the recent flare-up. South Korea's KOSPI posted a rally of over 30% for April, while Japan's Nikkei recorded a rise exceeding 15% in the same month. China's Shanghai Composite climbed nearly 6% and India's Nifty 50 added roughly 7.5% during April.
On the macro front in Japan, Tokyo's consumer price readings for April showed modest upward movement but revealed softer underlying pressures. Headline consumer prices in the capital increased 1.5% year-on-year in April, up from 1.4% in March. Core CPI, which excludes fresh food, rose 1.5% year-on-year in April, down from 1.7% the prior month and missing market forecasts of 1.8%.
Those inflation dynamics left consumer prices below the Bank of Japan's target and pointed to fragile demand conditions. The BOJ has maintained its policy rate for now but has signaled a more hawkish orientation, and markets have priced in the possibility of a rate increase as early as June.
Elsewhere in the region, Australia's S&P/ASX 200 climbed 0.9%. Coles Group reported a 3.1% rise in third-quarter sales, an outcome attributed to resilient supermarket demand and robust e-commerce performance, even as the company's liquor division showed signs of weakness.
Overall, Asian trading was shaped by a blend of encouraging corporate news and lingering geopolitical concern. The market backdrop remains sensitive to developments in the Middle East and to commodity price swings, while domestic data such as Tokyo's CPI and corporate updates, including earnings beats from major technology firms, continue to guide investor positioning.
With several exchanges closed for holidays and volumes subdued, market reactions to new information may be amplified in the coming sessions. Traders and portfolio managers are likely to monitor further developments on the U.S.-Iran front, oil flows through the Strait of Hormuz, and upcoming corporate and economic releases to reassess risk and opportunity across the region.
Market snapshot - key data referenced in this report
- Nikkei 225: +0.6% on the day
- Tokyo headline CPI (April): +1.5% year-on-year
- Tokyo core CPI (ex-fresh food, April): +1.5% year-on-year (down from 1.7%)
- Brent crude: spiked above $126 per barrel earlier in the week before retreating
- Coles Group: third-quarter sales +3.1%
- April monthly equity gains across the region: KOSPI +30% (approx.), Nikkei +15% (approx.), Shanghai Composite +6% (approx.), Nifty 50 +7.5% (approx.)