<div id="readability-page-1"><div><figure></figure>Asian markets opened Friday on a cautious note as a sharp swing in oil prices kept risk appetite fragile and reminded traders how quickly Middle East headlines can ripple through global markets.Brent crude briefly surged to a four-year high above $126 a barrel on Thursday after reports that the US military would brief President Donald Trump on possible action against Iran.By Friday, Brent was holding near $111.60 a barrel, and US crude was around $105.50, a sign that the market was still volatile but no longer in panic mode.Oil keeps geopolitics front and centreThe bigger issue for traders is not just the level of oil, but the speed of the move.Brent’s June contract touched $126.41 before expiring on Thursday, and remained elevated on Friday at $111.66 for Brent and $105.53 for US crude.That kind of whipsaw matters because it quickly feeds into inflation expectations, transport costs and the outlook for central banks across import-dependent Asia.Asia remains especially exposed to higher energy prices because much of the region relies on imported oil and gas.Japan and Australia hold upThe regional tone was mixed, not outright risk-on.Australia’s S&amp;P/ASX 200 rose 1%, and Tokyo’s Nikkei 225 gained 0.7%, helped by a softer sense of panic around oil and a supportive lead from US corporate earnings.Asian shares were rebounding on Friday, with holiday closures limiting the reaction across the region and helping to keep trading thin.MSCI’s broad Asia-Pacific index outside Japan edged 0.3% higher, underscoring that the broad picture was one of stability rather than enthusiasm.Elsewhere, the tone was weaker.Hong Kong’s Hang Seng index ended at 25,776.53, down 1.28%, while South Korea’s KOSPI fell 1.38% to 6,598.87.Mainland China was only marginally firmer, with Shanghai up 0.11%.Geopolitics drives market moodFor the rest of the session, investors will be focused on whether oil can hold around current levels or resume its climb.A sustained move higher would keep pressure on Asian inflation, currency markets and import bills, especially for economies that rely heavily on energy imports.The markets are still balancing that risk against broader support from strong US tech and industrial earnings, including results from Alphabet, Caterpillar and Apple, which have helped Wall Street and improved the global backdrop for equities.That leaves Asia trading with a familiar split: exporters and some cyclicals can still find buyers, but risk-sensitive markets are more reluctant to chase gains as geopolitical headlines dominate.With many bourses closed for May Day and the region running on a holiday-thinned tape, Friday’s action is being driven less by domestic data and more by geopolitics, crude and global earnings momentum.</div></div>

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Asian markets opened cautiously as oil price swings affected risk appetite. Brent crude briefly surged to over $126 a barrel but stabilized around $111.60 by Friday. The volatility in oil prices impacts inflation expectations and transport costs, especially in energy-dependent Asia. While Japan's Nikkei 225 rose 0.7% and Australia's S&P/ASX 200 gained 1%, Hong Kong's Hang Seng and South Korea's KOSPI fell. Investors are focused on oil price stability amid geopolitical tensions and strong US corporate earnings, leading to a mixed market tone across the region.

Nikkei 225 leads Asian markets higher as oil swings ease panic