Asian Shares Mixed Amid Middle East Tensions; Nikkei Surges

(RTTNews) - Asian stocks turned in a mixed performance on Friday as U.S.-Iran tensions persisted over the control of the Strait of Hormuz.

Brent crude prices remained elevated above $105 a barrel, fueling worries about inflation, interest rates and economic growth.

Chipmaker Intel's strong earnings results and U.S. President Trump's decision to extend the Lebanon-Israel ceasefire by three weeks provided only modest support for markets.

The dollar index was set for its weekly gain in three while gold dipped below $4,700 an ounce.

China's Shanghai Composite index dropped 0.33 percent to 4,079.90, with computing power concept stocks retreating.

Hong Kong's Hang Seng index edged up by 0.24 percent to 25,978.07, recovering from an early slide as investors hunted for bargains in technology and semiconductor stocks.

Japanese markets rallied to reach a new record high after data showed core inflation in the country slipped below the Bank of Japan's 2 percent target for a second straight month in March due to subsidies and easing food prices.

The yen extended losses despite Finance Minister Satsuki Katayama warning of potential intervention to curb speculative moves. The Bank of Japan is scheduled to meet next week, with no change in interest rates expected.

The Nikkei average surged 0.97 percent to 59,716.18, posting its third consecutive weekly gain. The broader Topix index finished marginally higher at 3,716.59.

Seoul stocks ended on a flat note, with the Kospi average finishing marginally lower at 6,475.63 after hitting a record high in the previous session. The index gained more than 4 percent for the week, driven by strong gains in major chipmaking stocks.

Australian stocks ended slightly lower amid lingering uncertainty surrounding potential peace talks between the United States and Iran.

The benchmark S&P/ASX 200 finished marginally lower at 8,786.50 while the broader All Ordinaries index slid 0.20 percent to 9,006.40. Mining and gold stocks declined, offsetting gains in the energy sector.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 ended little changed with a negative bias at 12,874.94 after Q1 headline inflation came in 3.1 percent year-on-year in the first quarter, unchanged from the prior reading and holding above the central bank's target range.

Overnight, U.S. stocks backed down from record closing highs as Iran showed off its control over the Strait of Hormuz with a video of its commandos storming a cargo ship, and activated defense systems in parts of Tehran, following reports of hostile aerial activity.

Media reports suggested that Iranian Parliament Speaker Mohammad Bagher Ghalibaf has resigned from U.S. negotiations, signaling a shift toward hardline unity.

Adding to uncertainty about the potential for a second round of peace talks, President Trump said he has ordered the Navy to "shoot and kill any boat" that is putting mines in the waters of the Strait of Hormuz.

Earlier, U.S. forces boarded a supertanker carrying Iranian oil in the Indian Ocean. Mixed earnings also weighed on markets, with American Airlines, Honeywell and IBM providing disappointing guidance.

In economic news, initial jobless claims revealed a slightly uptick last week while a measure of U.S. business activity hit a three-month high in April.

The tech-heavy Nasdaq Composite fell 0.9 percent while the S&P 500 and the Dow both dipped by 0.4 percent.