Asian Stocks Gain, Oil Below $100; Trump Eyes US-Iran Meeting

Asian stocks were headed for a second week of gains, while oil prices remained below $100 a barrel as investors reduced risk ahead of a weekend that could bring a resolution to the Middle East war. A 10-day ceasefire between Lebanon and Israel began on Thursday, and US President Donald Trump said the next US-Iran meeting may occur over the weekend, when their ceasefire expires.

Brent crude futures dropped over 1 percent to $98.14 a barrel, and US West Texas Intermediate crude futures fell 1.6 percent to $93.15 a barrel. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.8 percent, but remains near its highest since March 2nd and is up 14.5 percent in April. Japan’s Nikkei slipped 1 percent after hitting a record high on Thursday.

M&G's Andrew Chorlton noted the contrast between policymakers' risk assessments and market implications, calling it "somewhat complacent." The euro last bought $1.1779. The US S&P 500 and Nasdaq rose to record closing highs on Thursday. The dollar index was at 98.24, near its lowest since March 2nd. The Australian dollar fetched $0.7163.

ATFX Global's Nick Twidale said concrete evidence of lasting peace, such as a full reopening of the Strait of Hormuz, is needed to sustain positive equity markets. The yen was weaker at 159.40 per dollar after Bank of Japan Governor Kazuo Ueda avoided signaling a rate hike this month, leading markets to reduce bets of an increase at the BOJ’s April 27th-28th policy meeting.