Manila (Philippines), Jun 20 (AP) Crude oil prices rose and Asian shares were trading mixed on Friday as investors awaited more clarity on whether or not the US will join Israel’s war against Iran.
US futures edged lower after Wall Street was closed on Thursday for the Juneteenth holiday.
US benchmark crude oil added 15 cents to USD 73.65 per barrel, while Brent crude, the international standard was up 19 cents at USD 76.89 per barrel.
Oil prices have been gyrating as fears rise and ebb that the conflict between Israel and Iran could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world’s crude passes.
Investors remained wary after the White House said President Donald Trump could decide on whether to launch an attack on Israel within the next two weeks, but that he “still believes diplomacy is an option,” said Anderson Alves, a trader at ActivTrades.
Trump’s tariffs agenda remains another major factor weighing on markets.
Tokyo’s Nikkei 225 index edged 0.1 per cent higher to 38,538.14 after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7 per cent in May, adding to challenges for Prime Minister Shigeru Ishiba’s government and the central bank.
“Core Japanese inflation rose more than expected in May. Even so, the Bank of Japan is likely to prioritize the negative impact of US tariffs, Min Joo Kang of ING Economics said in a commentary.
”For now, it’s more concerned about the risk that US trade policies could break the virtuous circle of wage growth and inflation.”
Hong Kong’s Hang Seng index jumped 1.2 per cent to 23,504.59, while the Shanghai Composite gained 0.1 per cent, reversing earlier losses, to 3,364.83. China’s central bank kept its key 1-year and 5-year loan prime rates unchanged, as expected.
Australia’s S and P/ASX 200 shed 0.3 per cent to 8,500.40 while South Korea’s Kospi gained 1.2 per cent to 3,014.05.
“Risk sentiments were cautious as Iran-Israel tensions continued roiling,” Mizuho Bank Ltd. said in a commentary.
On Thursday, the Bank of England kept its main interest rate at a two-year low of 4.25 per cent, citing risks that the conflict between Israel and Iran will escalate.
The US dollar slipped to 145.28 Japanese yen from 145.46 yen. The euro rose to USD 1.1530 from USD 1.1498. (AP) PY PY
