Asian stocks oil prices moved in opposite directions Friday, with regional equities rising and crude falling on hopes the United States and Iran will reach a deal to end their war.
Brent crude fell 0.9% to about USD 93 a barrel in Friday morning Asia trading, while West Texas Intermediate dropped 1.1% to just below USD 88 a barrel.
Stock indexes in Tokyo, Seoul and Taipei rose more than 2%, while Sydney gained 1%. Hong Kong posted smaller gains, while Shanghai’s main benchmark lost 0.4%.
Wall Street advanced Thursday despite weaker economic signals from the US. The Federal Reserve’s preferred inflation gauge rose in April to its highest level since 2023, while first-quarter growth was revised lower.
Persistent inflation and slower growth reduced the chances of Federal Reserve rate cuts, despite President Donald Trump’s calls for lower rates.
Matthew Martin of Oxford Economics said recession risks were easing as oil prices moderated and worst-case scenarios faded. He said the equity improvement was driven mostly by a strong earnings season and AI-related capital expenditure.
Read: Oil Prices Rise as US Strikes Test Iran Ceasefire
AI optimism has lifted chip stocks, with Micron and SK Hynix market values crossing USD 1 trillion this week.
In Europe, European Union commissioners are due to discuss trade deficits with China and measures to protect companies from what Brussels calls unfair Chinese competition.
