[MARKET ANALYSIS] Asia-Pac stocks are mostly subdued as risk sentiment wanes amid higher oil prices and yields, as well as Trump's latest rhetoric on Iran

APAC Stocks: Mostly lower

• Asia-Pac stocks are mostly subdued after failing to sustain the early momentum that was spurred by the gains on Wall St, where tech outperformed, and sentiment was underpinned amid constructive headlines from the Trump-Xi summit, while the souring of risk sentiment coincided with higher oil prices and yields amid risk that the geopolitical situation in Iran could escalate when US President Trump returns from his Beijing trip.

ASX 200: -0.1%

• Struggles for direction as the strength in tech and financials is offset by the losses in mining, materials, resources and utilities.

Nikkei 225: -1.0%

• Swung between gains and losses with the index ultimately continuing its pullback from the recent peak amid oil-related headwinds and after the hotter-than-expected PPI data further supports the case for a rate hike at next month's BoJ meeting.

Hang Seng & Shanghai Comp: Hang Seng 1.0% / Shanghai Comp +0.2%

• Chinese markets are somewhat mixed despite the recent constructive headlines from the Trump-Xi summit, while the leaders are meeting again today in a restricted working lunch session prior to US President Trump's return to the US. Furthermore, sentiment was not helped by recent disappointing lending and aggregate financing data from China for April, which showed a surprise contraction in loans.

US Equity Futures: Lower

• Pulled back as risk sentiment soured overnight amid higher oil prices and yields, as well as Trump's comments on Iran.

European Equity Futures -0.9%

• Indicate a lower cash market open with Euro Stoxx 50 futures down 0.9% after the cash market closed with gains of 1.3% on Thursday.