CANBERA (dpa-AFX) - Asian stock markets are trading mostly lower on Friday, following the broadly negative cues from Wall Street overnight, amid renewed concerns about a military conflict between the U.S. and Iran, with reports suggesting American military intervention may be imminent. Regional trading volumes remained thin amid the Lunar New Year holidays in China and Taiwan. Asian markets ended mostly higher on Thursday.
Traders also seemed reluctant to make significant moves ahead of the release of closely watched readings on US consumer price inflation later in the day that could have a significant impact on the outlook for interest rates.
The Australian stock market is trading modestly lower on Friday, snapping a five-session winning streak, following the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is staying below the 9,100 level, with weakness in technology stocks and a mixed performance at most other sectors.
The benchmark S&P/ASX 200 Index is losing 14.00 points or 0.15 percent to 9,072.20, after hitting a low of 9,046.90 earlier. The broader All Ordinaries Index is down 18.80 points or 0.20 percent to 9,297.80. Australian stocks closed significantly higher on Thursday.
Among major miners, BHP Group is gaining more than 1 percent, Fortescue is adding almost 1 percent and Mineral Resources is advancing almost 3 percent after reporting upbeat first-half results, while Rio Tinto is declining more than 3 percent after reporting annual earnings that fell short of expectations.
Oil stocks are mixed. Santos and Woodside Energy are edging down 0.2 to 0.4 percent each, while Origin Energy is gaining 1.5 percent and Beach energy is edging up 0.4 percent.
Among tech stocks, Afterpay-owner Block is losing more than 2 percent, WiseTech Global is slipping almost 5 percent, Xero is declining almost 4 percent and Appen is tumbling almost 7 percent, while Zip is gaining more than 2 percent.
Among the big four banks, ANZ Banking is gaining almost 1 percent and Commonwealth Bank is edging down 0.2 percent, while National Australia Bank is losing almost 1 percent and Westpac is edging up 0.4 percent.
Gold miners are mixed. Resolute Mining and Northern Star Resources are adding almost 1 percent each, while Evolution Mining is gaining almost 2 percent. Newmont is declining almost 3 percent and Genesis Minerals is losing almost 2 percent.
In other news, shares in Alliance Aviation are sliding more than 14 percent after the wet lease provider said a contract with a major airline, understood to be Qantas, is unprofitable and needed to be renegotiated, after it reported a net loss of $105.8 million for the first half.
Shares in Guzman y Gomez are tumbling almost 11 percent after the Mexican fast food chain reported first-half sales that were softer than the market expected, but the company said it remains on track to meet its store opening target this year.
Shares in Latitude Group are jumping more than 9 percent after the credit provider reported upbeat full-year results and boosted its final dividend.
Shares in QBE Insurance are soaring more than 7 percent after the insurer reported upbeat results for the full-year, as premium income and investment returns improved solidly.
Shares in Inghams Group are plunging almost 16 percent after the poultry producer cut its full-year profit forecast following a sharp decline in first-half earnings driven by rising costs.
In the currency market, the Aussie dollar is trading at $0.702 on Friday.
The Japanese market is sharply lower on Friday, reversing some of the gains in the previous two sessions, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling below the 56,750 level, with weakness across most sectors led by financial and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 56,726.73, down 741.10 points or 1.29 percent, after hitting a low of 56,680.88 earlier. Japanese shares ended notably higher on Thursday.
Market heavyweight SoftBank Group is losing almost 3 percent, while Uniqlo operator Fast Retailing is flat. Among automakers, Toyota is losing almost 4 percent, while Honda is declining almost 2 percent.
In the tech space, Advantest is losing almost 2 percent, Screen Holdings is down almost 1 percent and Tokyo Electron is declining more than 3 percent.
In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are losing more than 2 percent each, while Mizuho Financial is declining almost 2 percent.
Among the major exporters, Sony is declining almost 3 percent and Panasonic is losing more than 1 percent, while Mitsubishi Electric and Canon are edging down 0.3 percent each.
Among other major losers, Sumitomo Pharma is tumbling more than 12 percent, while Central Japan Railway and Yamaha Motor are declining more than 4 percent each. Chubu Electric Power, Trend Micro, Nomura Holdings and Kanadevia are losing almost 4 percent each, while Suzuki Motor, Isuzu Motors, ANA Holdings, Teijin and Mazda Motor are down more than 3 percent each.
Conversely, Mitsui Kinzoku is jumping almost 6 percent, IHI is surging more than 5 percent Sumitomo Electric Industries is advancing more than 4 percent and Japan Steel Works is adding more than 3 percent, while Kawasaki Heavy Industries, Keyence and Chugai Pharmaceutical are gaining almost 3 percent each.
In economic news, Japan's annual inflation eased to 1.5 percent in January 2026 from 2.1 percent in the prior month, the lowest since March 2022. Core consumer price index, which excludes fresh food but includes energy, rose 2 percent year-on-year in January 2026, cooling from 2.4 percent in December and marked the weakest pace of growth in two years. The reading was in line with market expectations and aligned with the inflation target of the Bank of Japan.
Meanwhile, the latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to expand in February, and at a faster pace, with a manufacturing PMI score of 52.8. That's up from 51.5 in January and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI ticked up to 53.8 from 53.7 and the composite PMI climbed to 53.8 from 53.1.
In the currency market, the U.S. dollar is trading in the lower 155 yen-range on Friday.
Elsewhere in Asia, New Zealand, Hong Kong, Malaysia and Indonesia are lower by between 0.2 and 0.9 percent each. South Korea is bucking the trend and is up 1.3 percent. Taiwan and China remain closed for the Lunar New Year holidays.
On Wall Street, stocks moved mostly lower during trading on Thursday, giving back ground after turning in a strong performance in the previous session. The major averages all moved to the downside, although selling pressure was somewhat subdued.
The major averages finished the day off their lows of the session but still in negative territory. The Dow slid 267.50 points or 0.5 percent to 49,395.16, the Nasdaq fell 70.91 points or 0.3 percent to 22,682.73 and the S&P 500 dipped 19.42 points or 0.3 percent to 6,861.89.
The major European markets all also moved to the downside on the day. While the German DAX Index slid by 0.9 percent, the U.K.'s FTSE 100 Index declined by 0.6 percent and the French CAC 40 Index fell by 0.4 percent.
Crude oil prices jumped again on Thursday amid concerns about a military conflict between the U.S. and Iran, with reports suggesting American military intervention may be imminent. West Texas Intermediate for March delivery was up $1.25 or 1.9 percent to $66.44 a barrel.
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