Stock market today: Japan’s Nikkei, Wall Street futures rise as dollar hovers near six-week high amid U.S.-Iran talks

Asian stock markets climbed on Friday as the U.S. dollar hovered near a six-week high and oil prices rose as investors looked for progress in U.S.-Iran peace negotiations, despite ongoing disagreements between the two sides on major issues.

Investor concerns continued to center on the potential closure of the Strait of Hormuz, a vital route for global energy shipments, which has driven oil prices sharply higher and reshaped expectations for global interest rates amid rising inflation fears.

U.S. Secretary of State Marco Rubio said there were some good signs in efforts to end the war with Iran, but major disagreements persist over Tehran’s uranium stockpile and control of the Strait of Hormuz.

Asian shares surge

In the Asian stock market, Japan’s gained 2.74 percent, while the Taiwan Weighted Index gained 2.18 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.73 percent and was set for a 1.06 percent weekly gain.

Among the top gainers on the Nikkei 225 were SoftBank Group, which surged 11.89 percent. Meanwhile, Taiyo Yuden climbed 11.75 percent and Sumitomo Electric Industries advanced 10.16 percent.

Oil prices edged higher on Friday after a steep decline earlier in the week, as mixed signals surrounding the Iran talks continued to fuel uncertainty among investors. Despite the volatility, prices remain significantly above pre-war levels and are likely to stay elevated even if a resolution is reached.

Extended disruptions to energy supplies as the conflict continues risk driving up global inflation, prompting traders to factor in potential interest rate increases across both developed and emerging economies.

Markets are now anticipating possible rate hikes from the Federal Reserve by year-end, marking a sharp shift from earlier expectations of two rate cuts before the outbreak of the war.

Read: Gold prices fall to $4,525.2 as energy-driven inflation sparks rate hike prospects

Wall Street futures edge higher on NVIDIA earnings

In the U.S. stock market, S&P 500 futures gained 0.26 percent, while Nasdaq futures rose 0.39 percent. European futures advanced 1 percent, pointing to a strong market open as investor confidence was boosted by NVIDIA Corporation earnings this week, which capped a solid round of results from major technology firms.

In currency markets, the dollar index rose to 99.29. The Japanese yen was last trading at 159.13 per dollar, hovering close to the key 160 threshold that investors believe could prompt Japanese authorities to intervene in currency markets once again.

The yen’s renewed slide comes only weeks after Japan carried out an estimated $65 billion intervention to support the currency. Data released on Friday showed that Japan’s core inflation eased to a four-year low in April, adding uncertainty to the outlook for future rate hikes by the Bank of Japan.