Japanese and South Korean equities rose in thin holiday trade on Friday with strength in technology shares, while investors watched for updates in the ongoing U.S.-Iran war.
Wall Street indexes ended little changed overnight, while futures tied to them were largely muted in Asian trading on Friday.
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Trading volumes remained subdued, with several major regional markets, including Hong Kong, Australia, and Singapore, closed for the Good Friday holiday.
Japan’s Nikkei 225 advanced 1.2%, while South Korea’s KOSPI jumped nearly 3%, supported by strength in technology shares.
Investor sentiment steadied on Thursday after Iran said it was working with Oman on a framework to manage shipping traffic through the Strait of Hormuz.
However, caution persisted following escalating rhetoric from U.S. President Donald Trump. In a Truth Social post late Thursday, Trump warned that U.S. forces had “not even started” their campaign in Iran and could next target critical infrastructure, including bridges and electric power plants.
The comments followed a speech earlier in the day in which Trump said the U.S. could intensify military action in the coming weeks, while offering little clarity on a timeline for de-escalation, unsettling global markets.
Oil prices surged above $110 per barrel on Thursday on escalation fears.
In China, data showed that services sector growth cooled in March, with the RatingDog Services PMI falling to 52.1 from February’s 33-month high of 56.7, although it remained in expansion territory.
China's Shanghai Composite index fell 0.9%, while the blue-chip Shanghai Shenzhen CSI 300 index edged 0.6% lower.
Investors now await U.S. nonfarm payrolls data due later in the day for further cues on the Federal Reserve’s policy outlook.
