Asian stocks erased earlier declines on the final trading day of a volatile week, even as the Middle East conflict showed little sign of easing. Gold and silver rose. Some relief for regional shares came in the form of a weaker dollar and a drop in crude prices as the US weighed a range of options to address the spike in energy costs amid the war in Iran.
Gains in Chinese technology shares also helped the MSCI Asia Pacific Index retrace an earlier decline of as much as 1.2%.
The Bloomberg Dollar Spot Index fell 0.1%. Equity-index futures for the US and Europe also rose, indicating some improvement in sentiment in stock markets. Attention will later turn to the crucial US jobs report, which may offer fresh clues on the path of Federal Reserve interest rates.
“The market looks surprisingly resilient,” said Naoki Fujiwara, senior fund manager at Shinkin Asset Management. “Worries over Iran remain, but investors seem to think this won’t be a long-term conflict.”
Even so, Asia’s benchmark stock index has dropped 6.5% since the Iran war began, with MSCI’s regional gauge set for its worst week since March 2020. The dollar is poised for its best week since November 2024. Crude oil headed for the biggest weekly surge since 2022.
