[MARKET ANALYSIS] Asia-Pac trades somewhat mixed with the region amid oil-related price pressures

APAC Stocks: Mixed

• Asia-Pac stocks trade somewhat mixed with the region tentative amid headwinds from the recent double-digit surge in oil prices after Iran's new Supreme Leader dug in and called for a continued closure of the Strait of Hormuz, as well as warned that other fronts will be opened if the war persists, while the US also initiated 60 Section 301 investigations related to failures to take action on forced labour.

ASX 200: +0.2%

• Recouped initial losses in relatively rangebound trade as strength in financials and energy offset the losses in mining and materials.

Nikkei 225: -1.2%

• Underperforms as oil and inflationary-related pressures weigh on the heavy exporting industries, including tech and autos, with Honda among the worst hit after it cancelled three planned EV launches in North America and revised its FY25/26 outlook to a loss of as much as JPY 690bln from the previous guidance of JPY 300bln profit.

Hang Seng & Shanghai Comp: Hang Seng -0.5% / Shanghai Comp -0.3%

• Chinese markets are ultimately subdued in rangebound trade with a lack of conviction heading into talks between US Treasury Secretary Bessent, USTR Greer and Chinese Vice Premier He Lifeng in Paris beginning on Sunday.

US Equity Futures: Marginally positive

• Recouped some recent lost ground, but with the rebound contained amid oil-related pressures and as the Iran war continues to show no signs of abating.

European Equity Futures +0.2%

• Indicate a mildly higher cash market open with Euro Stoxx 50 futures up 0.2% after the cash market closed with losses of 0.8% on Thursday.

Asia-Pacific stocks are trading mixed as the region grapples with upward pressure from rising oil prices linked to geopolitical tensions in Iran. The market is cautious, particularly impacting heavy exporters in Japan, while US and European futures are slightly recovering but remain under pressure from ongoing conflicts and inflation concerns.