Asian Shares Mixed As US-Iran Truce Faces Uncertainty

(RTTNews) - Asian stocks ended mixed in thin trade on Friday, with markets in mainland China, Hong Kong and Taiwan closed for holidays.

A cautious undertone prevailed after the Swiss Foreign Ministry said U.S. talks with Iranian negotiators on a pact to end the Middle East conflict have been postponed.

U.S. Vice president JD Vance has delayed his planned trip to Switzerland and Tehran also held back from the planned talks after at least 16 people were killed in Israeli airstrikes across southern Lebanon overnight.

Hezbollah reported intense fighting in the area, threatening the nascent agreement between Washington and Tehran to end their war.

The dollar strengthened in Asian trade while gold fell over 1 percent to $4,150 an ounce amid expectations that central banks including the Federal Reserve will raise interest rates to curb inflation.

Brent crude futures rose above $80 a barrel but were on track for a sharp weekly decline after tanker traffic resumed through the Strait of Hormuz.

Japanese markets ended modestly higher after official data showed Japan's key inflation gauge held steady in May, partly due to government subsidies on energy costs.

The Nikkei average scaled a new record high before giving up some gains to end 0.28 percent higher at 71,250.06. The broader Topix index fell 0.57 percent to 4,044.96.

The yen neared a 40-year low as the BOJ's April meeting minutes showed many board members had sought more time to examine the impact of the Middle East crisis on the country's economic activity and prices.

Seoul stocks ended slightly lower, after having surged to a new record high earlier in the day. The Kospi index slipped 0.13 percent to 9,052.42, snapping a six-day rally.

Market bellwether Samsung Electronics fell 2.3 percent while SK Hynix surged 2.9 percent and Hyundai Motor rose about 2 percent.

Australian markets fell sharply as weaker commodity prices weighed on mining and energy stocks. Hawkish signals from the Federal Reserve and the Reserve Bank of Australia also spooked markets.

The benchmark S&P/ASX 200 dropped 0.92 percent to 8,828.70 while the broader All Ordinaries index settled 0.87 percent lower at 9,047.30.

BHP Group shares plunged 5.6 percent after the mining giant announced it would record around $2.3 billion impairment charge in relation to its investment to date in the Jansen potash project.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 0.99 percent to 13,495.63, erasing losses from the previous session after data showed New Zealand exports surged to a second straight monthly record in May.

Overnight, U.S. stocks rallied to end the holiday-shortened week on an upbeat note after the U.S. and Iranian Presidents signed a preliminary agreement to end the Middle East war, and the first ships started sailing through the Strait of Hormuz.

Semiconductor stocks topped the gainers list as oil prices slid to their lowest levels since early March and President Trump said that Apple was going to buy computer chips from Intel.

In economic news, data showed that weekly jobless claims dropped last week but remained at slightly higher levels.

The tech-heavy Nasdaq Composite soared 1.9 percent, the S&P 500 gained 1.1 percent and the narrower Dow edged up by 0.1 percent.